Mednax Inc. has entered a definitive agreement to sell MedData LLC to private equity firm Frazier Healthcare Partners.
Mednax will receive $250 million in cash upon closing and up to a further $50 million tied to the performance of MedData in the future. MedData will continue to provide its services to Mednax.
Mednax CFO said the sale will better position Mednax, both financially and strategically, by allowing it to focus on its core physician services business and significantly reducing the company's leverage and future capital expenditures.
Barclays, Guggenheim Securities LLC, Cleary Gottlieb Steen & Hamilton LLP and McDermott Will & Emery LLP advised Mednax on the deal. Goodwin Procter LLP advised Frazier Healthcare Partners on the transaction.
In November 2018, S&P Global Ratings flagged Mednax for a possible downgrade, indicating that the company may potentially sell MedData for debt payment. The same month, Mednax announced the initiation of a process to divest MedData and eventually classified MedData as discontinued operations beginning in the first quarter of 2019.
