Monday July 20, 12:45 pm Eastern Time
Company Press Release
SOURCE: US Servis, Inc.
US Servis Signs Definitive Agreement to Be Acquired by HBOC
SOMERSET, N.J., July 20 /PRNewswire/ -- US Servis (Nasdaq: USRV - news), a leading provider of outsourcing services to physician delivery systems and hospital business offices, today announced it has signed a definitive agreement to be acquired by HBO & Company (Nasdaq: HBOC - news), the recognized leader in providing healthcare information systems and services.
Terms of the acquisition call for US Servis shareholders to receive $50 million of HBOC common stock at an estimated per share value of $4.30 per share of US Servis stock, on a fully diluted basis. The merger, which is subject to regulatory and US Servis shareholder approval, will be accounted for as a pooling of interests and is anticipated to close during the third quarter of 1998.
US Servis, based in Somerset, N.J., had $27.6 million in revenue for the fiscal year ended on March 31, 1998, and has 394 employees.
According to Graham O. King, Chairman and CEO of US Servis, ''The merger at this time makes excellent sense for our shareholders, customers and employees.''
''US Servis will be a valuable addition to HBOC's already successful outsourcing services business,'' said Charles W. McCall, HBOC Chairman, President and CEO. ''In addition to its over 90 percent recurring revenue base, US Servis brings a seasoned senior management team with extensive experience in outsourcing and a strong physician and hospital reference base. This acquisition will also accelerate HBOC's entry into revenue cycle outsourcing, which shows great potential for market growth.''
Serving approximately 3,400 physicians and 10 integrated delivery networks, US Servis is a leading provider of outsourcing services to physician delivery systems and hospital business offices. The Company currently assumes management and operational responsibility for client activities associated with financial management, reimbursement management, patient services and information technology.
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Potential risks and uncertainties include the possibility that the merger with HBOC may not close due to failure to satisfy certain conditions. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.
SOURCE: US Servis, Inc.
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US Servis Inc (Nasdaq:USRV - news)
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