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BOSTON, Mass. and ATLANTA, Ga. – In a significant move within the healthcare technology sector, MDaudit, a cloud-based risk monitoring platform, has agreed to acquire Streamline Health Solutions, Inc. (NASDAQ: STRM) in an all-cash transaction. The deal, valued at approximately $37.4 million, including debt, will see MDaudit purchase all outstanding shares of Streamline at $5.34 per share. This acquisition price is a 138% premium over Streamline’s closing price on May 28, 2025. According to InvestingPro data, Streamline’s current market capitalization stands at just $9.43 million, with the stock having declined over 63% in the past year. Analysis from InvestingPro suggests the company is currently trading below its Fair Value.
The merger, expected to close in the third quarter of 2025, will result in Streamline becoming a private company and its common stock being delisted from the Nasdaq Stock Market. Streamline stockholders must approve the merger agreement, which is not contingent on financing. MDaudit plans to fund the transaction using cash on hand and available credit. This comes at a crucial time for Streamline, which InvestingPro data shows has been facing financial challenges with a significant debt burden and negative EBITDA of $6.55 million in the last twelve months. InvestingPro subscribers have access to 8 additional key insights about Streamline’s financial health and market position.
The combination of these two organizations aims to enhance financial stability for healthcare providers by integrating MDaudit’s billing compliance and revenue integrity solutions with Streamline’s pre-bill integrity solutions. This merger is poised to unify data silos, expand executive insights, and drive actions across the revenue cycle continuum, thereby accelerating revenue outcomes and mitigating risk. The integration comes as Streamline faces revenue challenges, with InvestingPro reporting a 20.78% decline in revenue and a current ratio of 0.25, indicating potential liquidity concerns.
Ritesh Ramesh, CEO of MDaudit, emphasized the importance of connecting the dots across the revenue cycle with data- and AI-driven solutions, especially as health systems face increasing financial and operational pressures. Ben Stilwill, CEO of Streamline Health, highlighted the commitment to customer satisfaction and the creation of a broader platform that addresses today’s revenue cycle challenges.
Voting agreements have been secured with certain Streamline officers and directors, who collectively own approximately 22% of the company’s outstanding common stock, to vote in favor of the merger.
Cain Brothers acted as the exclusive financial advisor to Streamline, providing a fairness opinion to its Board of Directors. Legal counsel for the transaction was provided by Troutman Pepper Locke LLP for Streamline and Goodwin Procter, LLP for MDaudit.
This press release contains forward-looking statements regarding the proposed merger, including the timing and benefits of the merger. These statements are subject to risks and uncertainties that may cause actual results to differ materially.
The information in this article is based on a press release statement.
In other recent news, Streamline Health Solutions reported a decline in revenue for the fourth quarter of fiscal year 2024, with total revenue reaching $4.7 million, down from $5.4 million in the same period last year. The company also experienced a net loss of $2.1 million for the quarter, an increase from a $1.4 million loss in the previous year. For the full fiscal year, revenue fell to $17.9 million, compared to $22.6 million in FY2023. Despite these financial setbacks, Streamline Health is focusing on product innovation, launching a new denial prevention feature in its eValuator platform, which aims to improve revenue cycle management for healthcare systems. The company has set a goal to achieve EBITDA profitability by the second quarter of FY2025. Streamline Health’s CEO, Ben Stillwell, emphasized the importance of leveraging client success stories to boost marketing efforts. The company is optimistic about increasing its bookings rate in fiscal 2025, driven by the enhanced value of new features and improved client referenceability. Additionally, Streamline Health recently amended certain financial covenants with its principal lender, drawing an additional $1 million from its revolving line of credit.
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