MTBC, Inc., one of the leading providers of cloud-based healthcare solution and revenue cycle management tools, announced its acquisition of CareCloud, whose proprietary enterprise EHR cloud platform and business solutions are used by over 7,000 healthcare providers nationwide.
MTBC acquired CareCloud on January 8, 2020, on a debt-free and cash-free basis, with neutral working capital, through the closure of a contract and plan of merger. Canaccord Genuity Group Inc. represented as a financial advisor to CareCloud and its Board of Directors in association with the deal.
A. Hadi Chaudhry, President, MTBC, says, “This is a transformative opportunity to accelerate the build-out of our strategic roadmap to provide world-class technology and services to more providers. CareCloud’s cutting-edge cloud-based software, which, through its existing partnerships, leverages Amazon and Google cloud platforms, brings to MTBC exciting new technology integrations.”
He adds, “The acquisition also brings a Miami-based team of talented professionals with expertise in primary care and specialty physician practice operations.”
Miami-based healthcare technology firm, CareCloud, was established in 2009. It specializes in software and services, which is rated among the top industry solutions by KLAS Research, Gartner, and Black Book Research to various other advanced independent physician practices. Founded as a practice management software company, it later evolved to serve the full range of practice workflows, such as practice management (PM), patient experience management (PXM), revenue cycle management (RCM), and electronic health records (EHR).
CareCloud enables customers to streamline workflow, upsurge lucrativeness, and advance patient-care outcomes nationally across 50 specialties in 47 states with its integrated clinical and fiscal platform technology and a suite of solutions. Right from its headquarter in Miami to the Boston and Salt Lake City offices, the company maintains more than 4.5 million patients. It has been commended with over $2 billion in accounts receivable from customers.
“CareCloud has built a strong brand with its advanced technology, award-winning design, and innovative team,” stated MTBC CEO Stephen Snyder. He adds, “CareCloud and MTBC are highly synergistic, and we believe that our combined businesses will accelerate growth, yield greater operating efficiencies, and provide more flexibility for future expansion through our combined offering.”
Notable in the statement was a lack of detail about the precise basis for the transaction and its expected impact on MTBC’s finances moving forward.
However, the stock rose in deceptive response to the declaration, so investors seem to be enthralled by the deal.