Healthcare technology company MTBC Inc. completed the acquisition of Plano, Texas-based Meridian Medical Management under a stock purchase agreement.

The acquisition of Meridian, which provides revenue cycle management, electronic medical records and related services, was MTBC's largest acquisition to date and would add to the company's growth and margin expansion during 2021 and beyond, said MTBC's CEO, Stephen Snyder.

Somerset, N.J.-based MTBC, which provides cloud-based healthcare information technology solutions, acquired all issued and outstanding capital stock of Meridian and paid $15 million in cash, 200,000 shares of its 11% Series A cumulative redeemable perpetual preferred stock plus warrants to buy 2,250,000 common shares at $7.50 per share.

MTBC also assumed Meridian's liabilities worth about $4.8 million.

MTBC said the cash payment will be used to repay Meridian's debt and transaction expenses, while a portion of the preferred stock will be held back until the satisfaction of certain conditions. The company also obtained representations and warranties insurance coverage of up to $4 million against potential losses arising from breach of representations and warranties under the agreement.

Following the closing of the deal, Meridian and its unit Origin Healthcare Solutions LLC became wholly owned subsidiaries of MTBC.

B. Riley FBR Inc. was an exclusive investment banker to Meridian for the transaction, while Crosstree acted as advisers to MTBC.