CBaySystems to acquire Spheris
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CBaySystems to acquire Spheris
Bangalore: CBaySystems Holdings, a provider of technology-enabled medical transcription, announced that two of its subsidiaries have agreed to purchase Spheris, a provider of clinical documentation technology and services. On 3 February, 2010, Spheris filed for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Code. Subject to court approval, two of the CBaySystems' subsidiaries, CBay and MedQuist, will be appointed the 'stalking horse' bidders for the Spheris, pursuant to Section 363 of the U.S. Bankruptcy Code. The proposed transaction will be governed by a court-directed bidding process, subject to applicable regulatory, company and court approvals. Pursuant to the stock and asset purchase agreement and subject to the satisfaction of its conditions, MedQuist will acquire substantially all of the U.S. and Canadian operating assets and select liabilities of Spheris for a total cash consideration of approximately US $75.2 million. "We look forward to being able to introduce Spheris' customers and employees to CBay's and MedQuist's solutions and services," says Robert Aquilina, Chairman of CBay Holdings. CBay will acquire all of the outstanding ownership interests of Spheris India in exchange for assuming its liabilities and a liability of Spheris related to Spheris India. CBaySystems employs around 6,300 people in India, while around 2,000 people are employed with Spheris India at Bangalore, Coimbatore and Hyderabad.

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