Streamline Health Solutions, Cincinnati, a publicly traded developer of Web-based document and information management systems, has announced the acquisition of privately held Meta Health Technology, New York, a provider of medical records management software, in a deal valued at $15 million, according to a news release from Streamline.
Streamline buys Meta Health for $15 million
According to the announcement, Streamline Health paid out $13.4 million in cash and $1.6 million worth of its own stock for all of Meta Health, the statement said. In a financial package in conjunction with the deal, Streamline restructured an agreement with Fifth Third Bank, refinancing a $4.1 million subordinated term loan and taking on a $9 million subordinated term loan, a $5 million senior term loan and a $5 million revolving line of credit, the news release said.
"Our clients, as well as all providers throughout the country, are facing the looming challenge of converting from ICD-9 to ICD-10, said Robert Watson, president and CEO of Streamline, in the news release. “The Meta suite of solutions, when bundled with our existing solutions, will help current and prospective clients better prepare for this challenge,” he said. Meta's software is used for chart abstraction, coding, physician query and quality improvement.
In a separate transaction, Streamline completed a $12 million equity investment led by Great Point Partners, Greenwich, Conn, and Noro-Moseley Partners of Atlanta, the release said.
Streamline's share price closed down 4.5% on the day of the announcement, Thursday, dropping to $3.82.
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