Advanced visualization and healthcare IT developer Merge Healthcare of Milwaukee has updated its offer to buy PACS vendor Amicas of Boston.
Merge reported on February 24 that it had signed a definitive commitment letter for $200 million in bridge financing with Morgan Stanley Senior Funding. In addition to that funding and cash already available to the two companies, Merge has established an account with $40 million in prefunded proceeds from its mezzanine investors, a portion of which will be placed in an escrow account pursuant to a final merger deal.
Merge added that it had also paid a nonrefundable commitment fee to Morgan Stanley for its financing commitment, and the company has incurred several million dollars in nonrefundable fees and expenses related to the proposed deal, which would be payable if Merge breached its obligations under the merger proposal. The company said the moves "demonstrate Merge's enthusiasm and dedication to the successful consummation of its proposed Amicas acquisition."
For its part, Amicas confirmed that it had received the updated proposal, and that its board would evaluate Merge's offer. The company is also weighing an offer to be taken private by investment firm Thoma Bravo of Chicago.
Related Reading
Merge makes play for Amicas, February 22, 2010
Amicas delays merger vote, February 19, 2010
Amicas inks Financials deals, February 19, 2010
Merge adds reseller, February 17, 2010
Merge posts Q4 loss despite higher sales, February 11, 2010
Merge awarded clinical trial for eDiary, January 28, 2010
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