MedAssets' Shareholders Approve Takeover by Pamplona

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MedAssets, Inc. MDAS recently announced the approval of the previously considered merger agreement with Pamplona Capital Management - a specialist investment manager - by its shareholders.

In November last year, Pamplona announced the signing of a definitive agreement to acquire MedAssets for $2.7 billion in cash ($31.35 per share). The purchase price reflects a 44.5% premium to the 30-trading day volume weighted average price of MedAssets common stock and an enterprise value of approximately $2.7 billion.

According to the recent poll, roughly 99.8% of the total votes were in favor of the merger. The proposed buyout is expected to conclude by the end of this month.

Meanwhile, MedAssets reported mixed third-quarter 2015 results. Earnings of 27 cents per share beat the Zacks Consensus Estimate by 4 cents but declined almost 7% on a year-over-year basis.

On the other hand, revenues increased 8.1% on a year-over-year basis to $190.0 million and steered past the Zacks Consensus Estimate of $188 million. The upside was primarily driven by strong results across both Spend and Clinical Resource Management (SCM) and Revenue Cycle Management (RCM) segments.

However, the revenue growth was fully offset by an increase in operating expenses, which totaled $181.5 million, up 20.1% on a year-over-year basis. The higher operating expenses were primarily attributed to 19.9%, 13.1% and 11.8% rise in selling and marketing expenses, cost of revenue, and general and administrative expenses, respectively.

During the third quarter of 2015, MedAssets repurchased shares worth $16.4 million.

However, owing to the impending acquisition deal, MedAssets did not provide any financial guidance.

Zacks Rank & Other Stocks to Consider

Currently, MedAssets carries a Zacks Rank #2 (Buy).

Other well-placed stocks in the medical space are Exactech EXAC , Accuray ARAY and Fresenius Medical Care FMS . While Exactech sports a Zacks Rank #1, both Accuray and Fresenius Medical Care have a Zacks Rank #2.

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ACCURAY INC (ARAY): Free Stock Analysis Report

FRESENIUS MED (FMS): Free Stock Analysis Report

EXACTECH INC (EXAC): Free Stock Analysis Report

MEDASSETS INC (MDAS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Business , Investing , Stocks
Referenced Symbols: ARAY , FMS ,

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