Transcend Finalizes Purchase of DeVenture Health Partners

Jan 12, 2009 (Close-Up Media via COMTEX) -- TRCR | Quote | Chart | News | PowerRating -- Transcend Services, Inc., a provider of medical transcription services to the U.S. healthcare market, announced that it has completed the previously announced acquisition of DeVenture Global Partners, Inc., which does business as DeVenture Health Partners.

According to a release, DeVenture provides medical transcription services to approximately 30 customers across the United States. With unaudited 2007 revenue of $2.5 million, projected 2008 revenue of approximately $3.8 million and a current annualized revenue run rate of approximately $4.8 million, DeVenture has grown by consistently providing excellent service to their customers, resulting in high customer retention and success in adding new business.

"We are very pleased with the substantial progress we have already made on the integration of our two companies," said Transcend Chief Operating Officer Sue McGrogan. "We have transitioned DeVenture's employees to Transcend as of January first, and there seems to be an excellent cultural fit between our two companies. We are happy to see that like Transcend, DeVenture delivers about 80 percent of its service domestically and we intend to continue to deliver the vast majority of our services using domestic transcription professionals. In fact, we are actively recruiting domestic transcriptionists to handle growth opportunities. The DeVenture management team is excited about adopting our operating model, just as we are excited about leveraging their perspective, skills and experience to grow the business. We have been proactively communicating with DeVenture's customers and ensuring them that the same team that has served them well in the past will continue to serve them well in the future."

"The combination of our companies deepens our relationship with Nuance," added Executive Vice President of Sales and Marketing Leo Cooper. "Transcend is the largest alliance partner for eScription, Nuance's enterprise-wide computer-aided medical transcription platform. With our number one overall medical transcription company ranking in the 2008 Best in KLAS report, we are also the highest ranked eScription alliance partner. We are pleased with the DeVenture sales pipeline overall and with the opportunity to win future eScription business in particular."

Under the terms of the agreement, Transcend will pay $4.25 million to acquire substantially all of the net assets of DeVenture, subject to a final working capital adjustment, including $3.45 million paid at closing. In addition, Transcend may pay an earn-out based on revenue realized over the first six months of 2009. No debt was assumed and the purchase price was funded using cash on hand.

Transcend expects the transaction to increase its revenue growth rate, to have no impact on its internal earnings per share projections in the first quarter of 2009 and to be slightly accretive to those projections for the remainder of 2009, the company noted in a release.

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