16th Sep 2015 08:23
LONDON (Alliance News) - US-based healthcare services company Constellation Healthcare Technologies Inc on Wednesday said it has agreed to buy NorthStar First Health LLC for up to USD18.0 million in cash and shares.
Constellation said the acquisition of NorthStar, a revenue cycle management company based in New Jersey, will increase its collections on behalf of doctors in the US by around USD170.0 million annually.
The deal will be paid for with a mixture of 64% cash and 36% shares. For the share portion, Constellation said the maximum number to be issued under the agreement is 3.0 million, based on an issue price of 142.00 pence per share. Constellation shares were up 2.1% to 145.00 pence on Wednesday.
"We continue to secure revenue and earnings enhancing businesses in the healthcare services space to complement our existing platform. NorthStar has an impressive senior leadership team, client coverage and technology suite which fits neatly into our long term vision for our company," said Paul Parmar, Constellation's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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