Spheris India is now CBay Group Company

Well, it's official now. The word has come from the horse's mouth itself.  The BIG combo of  MQ plus CBay has now another big cat under their kitty, the once mighty Spheris but now a bankrupt Spheris. As every one knows that Spheris has already filed for bankruptcy protection under the United States Bankruptcy Code on February 3, 2010.  The Spheris deal is to be governed by a bidding process subject to regulatory and court approval.  If the court approves the deal, the entire deal will be expected to be completed by the first half of 2010 and thus will make $400 million CBay company even bigger than ever.

CBay Holdings, through its subsidiaries MedQuist, Inc. and CBay, signed an agreement with Spheris to purchase select operating assets and liabilities of Spheris in multiple geographies, said in a statement released by CBay promoters.  The entire transactions will be done through a bidding process, subject to regulatory and court approvals. According to the agreement, MQ will acquire the domestic (US) and Canadian business of Spheris, while CBay, Inc. (the majority owner of MQ) will acquire the stocks of Spheris' India subsidiary, Spheris India Privated Ltd., thus bringing the end of tension to thousands of Spheris' workforce in US, Canada, and India.  
 

Spheris, based in Tennessee, US, with operations in North America and India had a consolidated revenue of $182.8 million and a net loss of $19.2 million for the year ended December 31, 2008.  So, the deal will make CBay Holding richer by almost $200 million, thus probably making it the biggest medical transcription company in the world.

Best of luck to all Spheris employees for a better tomorrow!!!



© 2010 Ranjan Kumar