Merge Healthcare gets $200 million bridge financing commitment for Amicas offer

By Sara Rosenberg

New York, Feb. 22 - Merge Healthcare Inc. has received a debt commitment for a $200 million bridge financing to help fund its proposed $248 million acquisition bid for Amicas Inc., according to a news release.

Morgan Stanley is the lead bank on the debt.

Based on the debt commitment and available cash, including $40 million of pre-funded equity investments from mezzanine investors, Merge Healthcare has proposed to commence a $6.05 cash per share tender offer for all Amicas shares and to close the acquisition as quickly as possible thereafter.

Currently, Amicas has a deal with Thoma Bravo LLC to be acquired for $5.35 cash per share and is still recommending that this transaction go through.

Amicas said in a press release on Monday that it believes the Merge Healthcare offer is risky to shareholders for a number of reasons, including its dependence on third-party financing and it being subject to a reverse break fee.

Merge Healthcare is a Milwaukee-based developer of solutions that automate health care data and diagnostic workflow. Amicas is a Boston-based provider of image and information management services.

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