MedAssets Closes Accuro Purchase

MedAssets Inc. became a more formidable player in the health care revenue cycle management business Tuesday with the close of its purchase of Accuro Healthcare Solutions, Inc. a deal worth $350 million (“MedAssets Buys Accuro, Could Reach 3,300 Hospital Clients,” May 1).

The acquisition brings MedAssets’ customer reach for comprehensive revenue cycle management and spend management software to more than 3,300 U.S. hospitals, including more than 2,000 revenue cycle management hospital facility customers, the Alpharetta, Ga.-based company said.

Dallas-based Accuro was formed in 2004 and was 80 percent owned by private equity firm, Welsh, Carson, Anderson and Stowe. According to its Web site, Accuro specializes in developing comprehensive solutions that address reimbursement pressures affecting health care providers. 

MedAssets (Nasdaq: MDAS) said it paid $207 million in cash and 8.85 million shares of MedAssets common stock for Accuro and gave WCAS General Partner D. Scott Mackesy a seat on its board of directors. MedAssets said it will pay an additional $20 million in cash or shares of its common stock on the first anniversary of closing the deal. 

MedAssets said it funded the cash portion of the deal with cash on hand, a $50 million expansion of its term loan credit facility and borrowings under its existing revolving credit facility. MedAssets serves more than 125 health systems and 30,000 non-acute care healthcare providers.