BWI: CBaySystems Holdings Announces Agreement to Acquire Spheris

Press release from Business Wire India
Source: CBaySystems Holdings Ltd
Thursday, February 04, 2010 02:10 PM IST (08:40 AM GMT)
Editors: Business: Advertising, PR & marketing, Business services, Financial Analyst, Healthcare, biotechnology & pharmaceutical, Information technology; Technology; Healthcare
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CBaySystems Holdings Announces Agreement to Acquire Spheris


Mumbai, Maharashtra, India, Thursday, February 04, 2010 -- (Business Wire India) -- CBaySystems Holdings Ltd. (AIM: CBAY), a leading provider of technology-enabled medical transcription and related healthcare revenue cycle solutions, announces that two of its subsidiaries have agreed to purchase Spheris, a global provider of clinical documentation technology and services that recently filed for Chapter 11 bankruptcy protection. The proposed transaction will take place pursuant to Section 363 of the United States Bankruptcy Code and will be governed by a court-directed bidding process, subject to applicable regulatory, company, and court approvals. CBay's subsidiaries MedQuist Inc. and CBay Inc., have entered into a "stalking horse" purchase agreement with Spheris Inc., whereby, subject to court approval, MedQuist Inc. will acquire the company's North American business, and CBay Inc., will acquire the stock of Spheris India Private Limited ("Spheris India"), a subsidiary of Spheris.

Spheris is based in Franklin, Tennessee, and has operations in North America and India. The transaction is expected to allow Spheris' customers to benefit both from an industry-leading technology platform offered by CBay's group company MedQuist and the integration of Spheris India with CBay's Indian subsidiary, CBay Systems (India) Pvt Ltd ("CBay India"), one of India's largest healthcare business processing outsourcing (BPO) companies.

"Spheris India will be a great addition to our India operations and will enhance our delivery capability in providing additional processing capacity, superior coverage and quality documentation to our customers," commented Raman Kumar, CBay's Vice Chairman and CEO. "CBay India is ranked as a leading employer of high quality medical language specialists and with this acquisition CBay will further solidify its leadership position and enhance our ability to provide best-in-class service to our clients."

If the CBay purchase agreement is approved and the conditions therein satisfied, it is expected that the transaction will be completed in the first half of 2010.

About CBay Holdings

CBay Holdings, together with its subsidiaries and equity investees, is a leading provider of technology-enabled medical transcription services and related revenue cycle solutions. CBay Holdings partners with healthcare providers to deliver outsourced transcription solutions designed to improve the quality and timeliness of clinical data and information, reduce operational costs, increase physician satisfaction, and enhance revenue cycle performance. The Company serves more than 2,400 health systems, hospitals, and physician groups in the U.S. CBaySystems Holdings Ltd is composed of a portfolio of businesses, including CBay Systems & Services Inc, CBay Systems (India) Private Ltd, Mirrus Systems Inc. and a majority shareholding of approximately 69.5% per cent. in MedQuist Inc. CBaySystems Holdings Ltd trades under the CBAY symbol on the AIM market of the London Stock Exchange.

Forward-looking statements

Statements made in this press release that are forward-looking in nature may involve risks and uncertainties. These statements include, without limitation, statements regarding the effects or benefits of the transaction, and any other statements that are not historical facts. These risks and uncertainties include the ability of CBay Holdings and its subsidiaries to achieve the benefits currently expected from the proposed transaction and the timing, receipt of approvals and satisfaction of conditions for the transaction. Other risks and uncertainties, which are more fully described in publicly filed documents of CBay Holdings, including its annual reports, could cause actual results to differ from those contained in the forward-looking statements.


CONTACT DETAILS
Dinesh Kumar, Director - India Operations, CBaySystems, +91 (22) 6641 7575, dinesh@cbayindia.com
Deepak Nair, Corporate Communications, CBaySystems, +91 (22) 6641 7575, deepak.nair@cbayindia.com
Disha Hoskote - Account Manager, TEXT 100, + 91 (22) 6659 5519, dishah@text100.co.in

KEYWORDS
MARKETING, BUSINESS SERVICES, Financial Analyst, HEALTHCARE, IT, TECHNOLOGY, HEALTHCARE

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