Advisory Board Co. (ABCO) announced that it has entered into an agreement to acquire Concuity, the health care division of Trintech Group PLC and provider of the contract and payment management solution for hospitals and physician groups.
Advisory Board Co will pay $34.5 million in cash, consisting of an initial payment of $28.5 million and an additional $6 million placed into escrow, which will be released across the next 21 months as certain business performance conditions are satisfied. The purchase price will be funded from cash on hand.
To account for the impact of the acquisition, the company updated its full calendar year 2010 guidance, excluding one-time transaction expenses, to EBITDA of approximately $34 million to $40 million and earnings per share of $1.05 to $1.25. The company also expects to incur one-time fees associated with the transaction of an additional five cents per diluted share. The guidance assumes an April 1, 2010 closing of the transaction and is based on preliminary estimates.
The company expects to provide updated guidance after the closing when it reports its financial results for the fiscal year ending March 31, 2010.
For calendar year 2011, the company expects the acquisition to be approximately breakeven to EBITDA and expects to incur approximately $2.5 million to $3.5 million of expense from the amortization of intangible assets and lost interest income.
The company anticipates that the acquisition will be accretive to EBITDA and earnings per share in calendar year 2012.
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May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.