Scottsdale, Ariz.-based Certive Solutions, a provider of healthcare revenue cycle management solutions, divested Titan Health Management Solutions assets that previously operated under Certive's Titan division.
Here are four things to know.
1. The divestiture took effect June 1.
2. Titan agreed to reacquire the assets for an estimated $3.2 million, up from the $2.7 million Certive initially paid to acquire the assets in July 2014. This is based on the deemed price per share of 30 cents for the shares issued under the divestiture agreement dated July 3.
3. Certive said it considered various factors before making the decision to divest the assets, such as the Titan's "reliance on a few customers" and "lower margins on expected new business," but ultimately decided selling the assets was the best business decision.
"Recognizing Certive's need to expend capital on its most accretive offerings possible and thus attain positive cash flow in the near term, it was mutually determined by both the company and the Titan principals that they would be better served by Titan reacquiring the assets originally acquired by Certive in July 2014," Certive said.
4. Certive expects in the future it may enter into a sales and marketing agreement with Titan.
Read more about the divestiture here.