CPSI (NASDAQ: CPSI), a company that provides solutions for community healthcare, announced today that it has completed its purchase of Viewgol, a company that offers analytics and outsourcing services for ambulatory RCM.
CPSI’s CEO, Chris Fowler, said that the acquisition of Viewgol will help CPSI achieve its goal of making its RCM services more affordable, profitable, and scalable by using the global market.
He said that Viewgol has more than 80% of its workforce based offshore, which will speed up CPSI’s offshoring initiatives.
He also said that Viewgol has a strong presence in the ambulatory market, with 38 customers in 15 states and over 20 different specialties. He added that CPSI will benefit from Viewgol’s existing offshore infrastructure and create synergies with its RCM business.
Viewgol’s CEO and co-founder, Doug Huffman, said that the merger is a good fit for both companies. He said that Viewgol’s clients and employees will gain access to more resources, tools, and RCM solutions as part of a larger organization.
According to the agreement, CPSI will pay $36 million in cash for Viewgol, plus an earnout of up to about $31.5 million based on Viewgol’s performance in 2024 and its contribution to TruBridge, CPSI’s RCM subsidiary.
CPSI expects Viewgol to generate GAAP net income of about $1.5 million and Adjusted EBITDA of about $4.5 million in 2024, excluding synergies and amortization expenses from the deal. CPSI will update its 2023 guidance for the combined company on its third quarter earnings call. CPSI was advised by McDermott, Will, & Emery, Grant Thornton, and Willis Towers Watson. Viewgol was advised by Brentwood Capital Advisors, Morris, Manning, & Martin, and Meredith CPAs.
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