Bahrain-based First Islamic Investment Bank has reported the partial sale of Medifax-EDISM to US-based WebMD Corporation for $280 million.
WebMD signed a definitive agreement on October 21, 2003 to acquire the Medical Services Division (MSD) of Medifax. Prior to the closing of the transaction, Medifax will distribute its remaining business unit – the Pharmacy Services Division (PSD) - to an affiliate of First Islamic. A separate sale process is underway for PSD.
The above two transactions are estimated to value Medifax at over $325 million. First Islamic and its co-investors acquired Medifax in 2001 for a transaction value of approximately $123.1 million, and three subsequent acquisitions were completed by Medifax for a total value of approximately $45 million.
Medifax is a provider of healthcare IT solutions to providers and payers, including real-time medical eligibility transaction services and other claims management solutions to hospitals, medical centers, physician practices and other medical organizations throughout the United States processing more than 200 million transactions per year for more than 130,000 healthcare providers.
Founded in 1997, with a paid-up capital of $112.5 million and over 100 shareholders, First Islamic's main lines of business are direct investment, real estate, and asset management. To date, First Islamic has undertaken direct investment transactions in excess of one billion dollars and real estate transactions totaling over two billion dollars. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
