Merger between Health Care Businesses CollabRx and Medytox Solutions Announced
Published By : 16 Apr 2015 | Published By : QYRESEARCH
Health care technology providers CollabRx Inc. and Medytox Solutions Inc. have announced their merger.
Medytox is based in West Palm Beach in Florida and owns an electronics records provider, clinical testing laboratories, a medical billing company, and a laboratory information systems company. CollabRx is headquartered in San Francisco and provides services to interpret genetic and molecular tests for cancer.
As per the conditions of the deal, shareholders of Medytox will have ownership of 90 per cent of the new company and shareholders of CollabRx will have ownership of the remaining 10 per cent. Both the companies hope the merger will hasten their growth.
For the year 2014, Medytox had an estimated US$ 57.9 million in terms of revenue and SU$ 15.7 million in terms of income. CollanRx on the other hand had US$ 415,000 in terms of revenue and an estimated net loss of US$ 4.3 million that same year.
Aegis Capital Corp. was the financial adviser for CollabRx on this deal while legal advice was provided by Goodwin Procter LLP. For Medytox, Akerman LLP was the legal adviser on the deal.
There have been a large number of mergers and acquisition activities over the recent past among firms that offer technology services to health care providers. This is mainly owing to the fact that most companies are looking to improve their technology in order to be able to handle the surge of patient load which has arisen after the Affordable Care Act.
Other health care technology deals that have recently taken place are KPMG, who acquired health care consulting company Beacon Partners earlier this month, and mobile diagnostic imaging firm MD Office Solutions, which was bought out by Digirad Corp in March this year.