MedAssets GPO to Acquire Broadlane for $850M

MedAssets has entered into a definitive agreement to acquire the Broadlane Group for $850 million, creating an entity that would serve as many as 4,400 hospitals through various services, including group purchasing, according to a release by MedAssets.

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Broadlane, based in Dallas, serves more than 1,100 acute care hospitals and 50,000 non-acute care facilities and Atlanta-based MedAssets serves more than 3,300 hospitals, including 1,700 hospitals in its Spend Management segment, and 40,000 non-acute healthcare providers.

With financing from J.P. Morgan and Barclays Capital, MedAssets plans to pay $725 million at closing and $125 million more in January 2012. The combined company would have reported non-GAAP combined net revenue of $508.9 million and non-GAAP combined adjusted EBITDA of $161.8 million, based on 2009 figures.

In addition to group purchasing, the combined company would provide strategic sourcing, medical device or PPI cost management, centralized procurement, supply chain outsourcing, supply chain analytics and data services, revenue cycle and lean process consulting, and a clinical workforce or labor management solution.

Read the release on MedAssets acquisition of Broadlane.

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