Century Business Services, Inc., Closes Three More Acquisitions Plus One Tuck-In Acquisition
Three Accounting Companies and One Benefits Firm Expected to Add $34 Million in Annual Revenue
CLEVELAND, Nov. 4 /PRNewswire/ -- Century Business Services, Inc. (Nasdaq: CBIZ - news; ''Century''), the nation's fastest emerging outsourced business services company, today announced that it has completed the previously announced acquisitions of three business services companies and one tuck-in firm. The acquisitions include: Medical Management Professionals, Inc. (MMP), a specialized accounting services company based in Chattanooga, Tennessee; Duitch, Franklin & Company, LLP, an accounting, advisory and tax company headquartered in Los Angeles, California; Weiss, Yess & Company, an accounting, advisory and tax company located in St. Louis, Missouri; and the tuck-in acquisition of B.L.U. Benefits Group, a benefits firm based in Chicago, Illinois.
Total consideration for the acquisitions consisted of approximately 70% Century stock (1,671,571 shares) and the remainder in cash. While all stock used for the transactions is subject to a lock-up provision for a specified period of time, more than 90% of the stock is restricted for a period of two years. The acquisitions add $34 million to the Company's annualized revenue run rate, bringing Century's annualized revenue run rate to well over $400 million including all closed acquisitions.
''These new acquisitions combined have in excess of 15 percent historic internal growth, which will be enhanced even more through access to Century's large customer base,'' stated Michael G. DeGroote, Century's President and CEO. ''Particularly, MMP's operations, in 12 states from 25 offices, should benefit greatly through internal growth. All of the acquisitions announced today are substantially accretive to Century's bottom line.''
With the addition of Chattanooga, Tennessee-based Medical Management Professionals, Inc. (MMP) to its outsourced professional business services network, Century enters several new markets, including Alabama, Arkansas, Louisiana, Mississippi, Oklahoma, and Tennessee, while strengthening its existing position in other markets, such as Maryland, Ohio, and Texas. MMP's accounting and financial management services include automated claims processing and collection, comprehensive budgeting, and financial analysis. MMP also provides compensation and managed care consulting, strategic planning, and personnel and office management services.
''Century's strategy for growth is the most exciting concept in the professional outsourced business services industry today,'' commented Tony M. D'Andrea, Jr., President and CEO of Medical Management Professionals. ''As a member firm with expertise in the health care industry and a wide market area, we expect to gain a significant number of new clients through the Century network and expand our geographic coverage considerably.''
In addition to completing its acquisition of Medical Management Professionals, Century also announced the closing of two other previously announced acquisitions, plus one tuck-in acquisition: the Los Angeles, California-based accounting, tax and advisory company Duitch, Franklin & Company, LLP; the St. Louis, Missouri-based accounting, advisory and tax company Weiss, Yess & Company; and the tuck-in acquisition of the Chicago, Illinois-based benefits firm, B.L.U. Benefits Group.
Century Business Services, Inc. is a leading provider of outsourced business services to small and medium sized companies throughout the United States. The Company provides integrated services in the following areas: accounting systems, advisory and tax; benefits design and administration; human resources; information technology systems; payroll administration; specialty insurance; valuation; and workers' compensation. These services are provided throughout a network of more than 160 Company offices in 35 states, as well as through its subsidiary, Century Small Business Solutions, a franchisor of accounting services with 650 franchisee offices in 47 states. The Company services approximately 102,000 clients, of which approximately 54,000 are serviced through the Century Small Business Solutions franchisee network. Management estimates that its clients employ more than 1.4 million employees, including 400,000 employed by clients of the Century Small Business Solutions network, which services small businesses with an average of eight employees.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, the Company's ability to integrate its newly acquired operations effectively with its existing businesses; the Company's ability to locate and acquire other businesses in furtherance of its aggressive growth strategy; the Company's ability to adequately estimate its liability reserves for its insurance businesses; the lack of market reverses in its investment portfolios; competitive pricing pressures; general business and economic conditions; and changes in governmental regulation affecting its insurance business or tax law changes affecting its business services operations, which are described in further detail in the Company's filings with the Securities and Exchange Commission.
For further information regarding Century Business Services, Inc., call our Investor Relations Office at 216-447-9000.
SOURCE: Century Business Services, Inc. |
