MedAssets purchases Texas-based supply company

MedAssets has entered into an agreement to purchase The Broadlane Group, based in Dallas.

Both MedAssets and The Broadlane Group provide supply chain management for hospitals and other medical care facilities.

MedAssets has 14 offices across the United States, including one in Cape Girardeau that employs about 160 people.

"We do anticipate there will be some changes at the corporate executive, management and operations levels given the overlapping capabilities of both organizations," said Robert Borchert, MedAssets spokesman. "Since we just signed the agreement, we are unable to provide any additional information until the transaction is completed."

It is expected to take 60 to 90 days to complete the purchase of Broadlane. A team has been formed to work out the details of merging the two companies.

Under the terms of the agreement, which is yet to receive antitrust clearance from the Federal Trade Commission, MedAssets will purchase The Broadlane Group for about $850 million in cash, with $725 million to be paid at closing and $125 million to be paid in January 2012. MedAssets has secured financing from J.P. Morgan and Barclays Capital.

MedAssets is the third-largest group purchasing organization and serves more than 3,300 hospitals and 40,000 nonacute health care providers.

The Broadlane Group is the fifth-largest group purchasing organization in the United States, serving more than 1,100 acute care hospitals and 50,000 nonacute care facilities.

Together, MedAssets and The Broadlane Group would have a reported combined net revenue of $508.9 million for the year ending Dec. 31, 2009.

"The Broadlane Group and MedAssets are an outstanding strategic fit, and this combination offers numerous benefits for our clients and stakeholders," said John Bardis, chairman, president and chief executive officer of MedAssets in a recent news release. "We are bringing together some of the best contract pricing in the industry, with highly complementary technology and clinical consulting expertise from both companies,"

In 2001, MedAssets purchased the Health Services Corp. of America, founded in Cape Girardeau in 1969 by Earl Norman. Most of the MedAssets employees in Cape Girardeau work in "back office" roles, including data systems, telemarketing and cost analysis, Norman said.

"They're a great company and have done an outstanding job of building that business," Norman said. "When I sold them my company, MedAssets had 150 employees and now they have 2,500 or more."

Norman said he is hopeful the merger may bring more jobs to the Cape Girardeau area because of the affordable cost of living and the work ethic of people who live here.

mmiller@semissourian.com

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