MedicalTranscription Billing Corp. unit MTBC Acquisition Corp. acquiredsubstantially all of the assets of Texas-based medical billing company MediGainLLC and its New Jersey-based affiliate, Millennium Practice Management LLC, for$7 million.
The transaction closed Oct. 3.
Medical Transcription Billing paid $2 million of thepurchase price at closing and is obligated to pay the remaining $5 millionwithin 90 days thereafter.
The acquired assets include MediGain's customer accounts,intellectual property, and offshore operations in India and Sri Lanka. Cash andcertain causes of action relating to pre-closing matters were excluded from theacquired assets and retained by MediGain and Millennium.
MTBC Acquisition acquired the assets through a strictforeclosure agreement, signed immediately after it acquired senior securednotes from Prudential InsuranceCo. of America and Prudential Retirement Insurance & Annuity Co., whichwere secured by the assets of MediGain and Millennium. The companies agreedthat substantially all the assets securing the notes would be transferred to MTBCAcquisition in satisfaction of the outstanding obligations under the notes.