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MedAssets Inc.’s (NASD: MDAS) first-quarter revenue rose 39.8 percent year over year, boosted by its acquisition of The Broadlane Group, which provides a vendor management system (VMS) to the healthcare industry. MedAssets reported revenue in the first quarter ended March 31 of $130.6 million, compared with revenue of $93.4 million a year ago.
However, the company reported first-quarter revenue rose 0.2 percent to $136.1 million when excluding a purchase accounting adjustment for the acquisition of Broadlane and recasting last year’s first-quarter results to include Broadlane revenue. MedAssets acquired Broadlane in the fourth quarter of 2010.
First-quarter revenue in the company’s “spend and clinical resource management” segment, which includes the Broadlane VMS, rose 1.1 percent based on net revenue (excluding the accounting adjustment) of $84.9 million and comparing it to the year-ago quarter with results recast to include Broadlane revenue.
The company’s net loss for the quarter was $16.2 million, driven primarily by the acquisition and integration costs. The company had net income of $5.5 million in the year-ago quarter.