Philips sells controlling stake in Medquist Inc. to CBaySystems for US$285 Million

Sale finally goes through......
Price is only for the 70% stake and leaves the remaining30% open

The Associated Press

Thursday, May 22, 2008

AMSTERDAM, Netherlands: Philips Electronics NV has agreed to sell its 69.5 percent stake in MedQuist Inc. to CBaySystems Holdings Ltd. of the Virgin Islands for around US$285 million (€185 million).

Philips says it agreed to sell MedQuist, a U.S.-based medical transcription service, for US$11.00 (€6.98) per share, a premium of 47 percent on its closing price in New York on Wednesday.

Philips said in a statement Thursday the deal will close sometime this fall, conditional on regulatory approvals.

Medquist lost US$4.4 million (€2.8 million) on sales of US$84 million (€53 million) in the first quarter.

CBaySystems, which is listed on the London Stock Exchange, provides billing and other services for U.S. hospitals and has outsourcing operations in India.