MedAssets to Buy Broadlane for $850M

MedAssets agreed to acquire health care supply chain management provider Broadlane Group for $850 million in cash.
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NEW YORK (TheStreet) -- MedAssets (MDAS) has agreed to buy health care supply chain management provider Broadlane Group for $850 million in cash.

Under the deal, $725 million will be paid at closing and $125 million will be paid in January 2012. To fund the transaction, MedAssets has obtained financing commitments from

J.P. Morgan

and

Barclays Capital

.

MedAssets expects to achieve at least $20 million of expense-based synergies in 2011. When combined with the growth of both businesses, the company expects this transaction to be about 5 cents to 10 cents accretive to non-GAAP diluted cash earnings a share in 2011.

Together, MedAssets and Broadlane would have reported non-GAAP combined net revenue of $508.9 million and non-GAAP combined adjusted earnings before interest, taxes, depreciation and amortization of $161.8 million for the year ended Dec. 31, 2009.

Patrick Ryan, chairman and CEO of Broadlane, is expected to join the MedAssets' board and assume the role of president of the company's spend management segment upon completion of the transaction.

-- Written by Andrea Tse in New York.

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