Philips sells controlling stake in US firm for €185m

Philips Electronics agreed to sell its 69.5% stake in MedQuist to CBaySystems Holdings of the Virgin Islands for around €185 million (US$285 million), an Associated Press report said.

Philips says it agreed to sell MedQuist, a US-based medical transcription service, for €6.98 (US$11) per share, a premium of 47% on its closing price in New York.

Philips said in a that the deal will close sometime this fall, conditional on regulatory approvals.

Medquist lost €2.8 million( US$4.4 million ) on sales of €53 million (US$84 million) in the first quarter.

CBaySystems, which is listed on the London Stock Exchange, provides billing and other services for US hospitals and has outsourcing operations in India, the report further said.