Transcend closes previously announced acquisition of DTS America

TRANSCEND SERVICES, INC. (NASDAQ: TRCR), a leading provider of clinical documentation services to the U.S. healthcare market, announced today that it has closed its previously announced acquisition of Nashville, Tennessee-based DTS America, Inc. ("DTS"), effective April 30, 2011.

Founded in 1995, DTS is a medical transcription company that serves approximately 30 hospitals plus a number of clinics and surgery centers in 13 states and currently generates approximately $12 million of annual revenue. The purchase price was $9.5 million in cash. This is a change from the preliminary terms announced on March 3, 2011, as there is no earn-out provision in the final agreement. No debt will be assumed by Transcend. The transaction is expected to have a nominal negative impact on second quarter 2011 earnings per share in the $0.00 - $0.01 per share range due to transaction costs and to be accretive to earnings per share starting in the third quarter of 2011.

"To continue to provide our customers with the best solutions, we needed to find a larger partner that recognized the value of DTS's employees, was as committed to providing excellent customer service as we are, and could keep up with new legislation and technology in a rapidly evolving industry," said Andrew Miller, Jr., who served as DTS Chief Executive Officer. "As we worked through the details of the acquisition, I had the opportunity to get to know Transcend's executive team and to see how Transcend will bring our employees and customers the expertise and technology we could not have provided alone. I am confident that Transcend is the best partner for DTS."

Susan McGrogan, Transcend President and Chief Operating Officer noted that business will continue as usual for DTS customers and employees, many of whom Transcend executives were able to meet after the pending acquisition was announced on March 3^rd. "We are excited for this opportunity to service our new customers and welcome new employees to the Transcend team, and we are confident we will be able to meet and exceed their expectations. We will be able to offer our DTS customers a greater array of flexible solutions to support their future clinical documentation needs," she said.

Suender M&A Advisors, a provider of merger and acquisition advisory services to medical transcription, medical coding and other health information management companies throughout the United States, initiated the acquisition as an advisor to DTS.