It’s official – in a press release that hit the wire just after 5 pm EST, Examworks announced that they have bought MedAllocators for $80 million. Cash.
That’s a pretty hefty price, as MA’s revenues were less than half that amount.
It’s going to be a great weekend for Ken Loffredo; he almost certainly got a big payday (and well deserved); he will also be running ExamWorks Clinical Solutions, a new division at Exam. Ken was smart enough to take his payout in cash, rather than stock. Exam’s management folks recently sold off a big chunk of their holdings, and the stock dropped rather dramatically at right about the same time.
The weekend will be a pretty crappy one for many MedAllocators/ASN workers. Word has come from several sources that the layoffs have already begun, and they may have started at Solomon Associates, the Pennsylvania IME company also bought by Exam today.
Yet another big company getting even bigger. Seems that’s a trend these days…