Emdeon (NYSE: EM), a provider of healthcare payment technologies, announced on Tuesday that it plans to purchase Chamberlin Edmonds & Associates Inc. for $260 million in cash using a $100 million financing commitment from Citigroup, Inc (NYSE: C) Capital markets..
Chamberlin Edmonds works with hospitals to reduce bad debt and uncompensated care expenses. The privately-held, Atlanta-based company helps uninsured patients work with Medicaid, Social Security and other charity care programs. The company works with more than 200 acute care facilities in 30 states and had revenue of $46.3 million during the first half of the year.
Nashville-based Emdeon said that the deal will be financed with cash and a $100 million financing commitment from Citigroup, Inc (NYSE: C) Capital Markets that will be established with the closing of the deal, which is expected to happen during the fourth quarter.
About Emdeon: Emdeon wants to make the servicing of medical accounts a little easier. The company offers products and services designed to simplify and streamline healthcare billing for insurance companies, healthcare systems, and doctors. It also offers discounted office supplies online, provides automated billing and document mailing services, insurance card printing, and has products specifically for dental and pharmaceutical offices. Major customers include CSC, Veriquest, Synergy, and Blue Cross and Blue Shield of North Carolina. Emdeon, which is jointly owned by General Atlantic and Hellman & Friedman, is looking to go public in 2009.
Shares of Emdeon traded up 1.29% on the news, hitting $10.20 during mid-day trading on Wednesday.
