MedQuist Holdings, Franklin, Tenn., has agreed to acquire a company that makes speech-recognition software for clinical applications (PDF) and also hired the former chief of Misys Healthcare Solutions as its new CEO (PDF), according to separate news releases.
MedQuist announces deal, new CEO
MedQuist agreed to pay total consideration of $130 million to acquire Pittsburgh-based M*Modal, according to a release. The consideration includes $48.4 million in cash at closing, $28.8 million in cash paid in installments over three years and 4.1 million shares of MedQuist valued at $52.8 million. MedQuist also expects to incur $13 million in costs associated with the transaction and related integration and restructuring activities. The deal requires antitrust clearance from the Federal Trade Commission. MedQuist expects to complete it by the end of the third quarter.
MedQuist also announced the hiring of Vern Davenport as chairman and CEO. Davenport, 53, most recently had been a special senior strategic adviser to the chairman of Quintiles Transnational Corp., Durham, N.C. Prior to that, Davenport was CEO of Misys Healthcare Systems and led its merger with Allscripts Healthcare Solutions in 2008.
Davenport replaces Bob Aquilina, outgoing chairman, and Peter Masanotti, president and CEO. Aquilina will remain on the company's board. Masanotti, who led the company during its turnaround and eventual initial public offering, will serve as a consultant to MedQuist till Sept. 30.
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