Mednax To Acquire Cardon Outreach In $400 Mln Deal

(RTTNews) - Mednax Inc. (MD) Monday revealed a definitive agreement to acquire Cardon Outreach for $400 million. Cardon will become a wholly owned subsidiary of MedData, a Mednax. The acquisition is expected to be immediately accretive to earnings.

Cardon is expected to generate 2016 annualized earnings before interest, taxes, depreciation and amortization or EBITDA, a non-GAAP measure, of $36 million. On closing of the deal MedData's operations will consist of approximately 2,000 employees.

Cardon Outreach provides specialized eligibility assistance, accounts receivable recovery services, third-party liability, workers' compensation, social security disability, denials management and appeals, and patient financing/early out programs to more than 800 hospitals and other healthcare facilities in 46 states.

Roger Medel, CEO of Mednax said, "We believe the addition of Cardon Outreach significantly advances the strategic development of our management services capability."

MEDNAX expects an initial contribution of $0.06 in annualized diluted earnings per share, which is net of an expected $0.08 per share in annualized non-cash amortization expense and also includes certain transaction-related and one-time expenses.

The transaction is expected to close within the next 30 days.