CBaySystems Holdings, a holding company with a portfolio of investments in medical transcription, healthcare technology and healthcare financial services has announced that affiliates of SAC Private Capital Group, (SAC PCG) and Lehman Brothers have agreed to invest $123 million in CBaySystems Holdings. The proposed investment will be made through a limited partnership and will consist of a subscription for new ordinary shares in CBaySystems Holdings at a price of 70pence per share, equivalent to approximately 57.8 per cent of the enlarged share capital of CBaySystems Holdings. The proceeds of the investment will be used by CBaySystems Holdings to finance the proposed purchase from Koninklijke Philips Electronics NV (Philips) of its approximately 69.5 per cent shareholding in MedQuist Inc (MEDQ.PK), the world's largest medical transcription services company. The purchase price for Philips' shareholding in MedQuist is approximately $287 million, equivalent to $11 per MedQuist share and representing a 47 per cent premium to the closing price of MedQuist shares on 21 May 2008.Headquartered in Mount Laurel, New Jersey, MedQuist provides a suite of healthcare technology and medical transcription services to more than 1,500 hospitals and large physician practices in the US. For the year ended 31st December 2007, MedQuist reported total revenues of $340.3 million. The subscription for shares in CBaySystems Holdings and the acquisition of Philips' shares in MedQuist are expected to close concurrently during the third quarter of 2008 and are conditional on applicable regulatory approvals, approval by the shareholders of CBaySystems Holdings and re-admission of the enlarged CBaySystems Holdings shares to trading on the AIM market, among other conditions. The closing of the share subscription will only occur if the conditions are satisfied and the purchase of Philips' shares in MedQuist is completed.Raman Kumar, Chairman and CEO of CBaySystems Holdings, said, "MedQuist, as the world's largest medical transcription company, has impressive technology, management and employees. We look forward to working with the MedQuist team as it seeks to enhance MedQuist's revenue growth and to deliver an ever-expanding portfolio of products and services to MedQuist's customers. We welcome the support of SAC PCG and Lehman Brothers in this transaction, which we believe will be of significant value to all stakeholders."
