MedAssets, Inc. (NASDAQ: MDAS)
MedAssets, Inc. (MDAS), a performance improvement company yesterday announced that they have entered into an agreement for Pamplona to acquire their company. The deal is valued at approximately $2.7 billion.
MedAssets, Inc. CEO Comments
“Since February, our executive leadership team has been developing and implementing our business transformation and value creation plan to prepare MedAssets for a growth-oriented future within a value-based healthcare world. We have been making substantial progress, and our third quarter 2015 financial performance is a testament to our employees’ commitment, dedication and hard work to execute our plan,” said R. Halsey Wise, chairman and chief executive officer, MedAssets. “Over the last year, our progress captured the attention of outside parties, and we received a number of unsolicited inquiries expressing interest in acquiring MedAssets. Our board of directors and executive leadership team conducted a thorough review of strategic alternatives and, after careful consideration, we determined an acquisition by Pamplona is the best course of action for our shareholders, customers and employees.” Globe Newswire
MDAS Technical Analysis
MDAS gapped up in price yesterday to $30.80, up from the prior day’s close of $23.68, which is a 30% increase in price based on favorable news. Taking a look at the daily chart, we can see that we are in unchartered territory as the stock is currently trading at all time highs. The previous 52 week high before the last couple of days of trading was $23.90 on July 30th. With the gap up in price, MDAS is so far above the previous high that it takes away any valid chart analysis. My trade would be to try and catch some of the spike up, if I can. MDAS is trading on over 8 times the normal daily trading volume. MDAS did reach pre market highs of $31.29, but it gave back $0.49 at the open, or equivalent to 2%. For trading purposes, my entry point would have been $30.85 looking for a run to the pre market highs of $31.29. My stop loss would have been $30.75, fearing anything below that and the stock would start to fill in the gap up.
MedAssets, Inc., a performance improvement company, provides technology-enabled products and services for hospitals, health systems, non-acute healthcare providers, payers, and other service providers and product manufacturers in the United States. It operates in two segments, Spend and Clinical Resource Management (SCM) and Revenue Cycle Management (RCM). The SCM segment provides a suite of cost management services, supply chain analytics, and data capabilities; strategic sourcing and group purchasing services; and medical device and clinical resource consulting, lean performance improvement, workforce management, and supply chain outsourcing and procurement services. This segment also provides business intelligence and decision support tools. The RCM segment offers Web-based software and technology-enabled services designed to enhance the revenue performance for healthcare organizations through patient access and financial responsibility, clinical documentation, charge capture and revenue integrity, pricing analysis, claims processing and denials management, payor contract management, extended business office revenue recovery, accounts receivable, and outsourcing services. As of December 31, 2014, the company served approximately 4,500 acute care hospitals and 123,000 ancillary or non-acute provider locations. The company was incorporated in 1999 and is headquartered in Alpharetta, Georgia. Yahoo Finance