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iBX Group, Inc. (OTCBB:IBXG), a publicly held Florida corporation, announced today it has agreed on terms to acquire Independent Transcription Service (ITS), a South Florida-based provider of dictation, transcription and document management services for the healthcare industry.

iBX estimates $250,000 in revenue from the ITS acquisition, according to company president and CEO Evan R. Brovenick. Terms of the pending transaction with ITS, a privately held company, were not disclosed.

"This transaction, when approved, will provide a strong platform for the company's proprietary digital online dictation/transcription product and document management service along with the workflow services associated with it," Brovenick said. "On-line transcription is one of the fastest-growing segments in the healthcare industry."

A recent study conducted by the U.S. Department of Labor indicates the demand for medical transcription services is increasing throughout the country. According to the 2002 - 2003 Occupation Outlook Handbook, the medical transcription industry will grow by as much as 35% by 2010.

ITS president Ira Fructhman will join iBX's management team and continue to operate the company as a subsidiary of iBX's Information and Technology Services Division, Brovenick said. ITS has been in business for 10 years.

"There is tremendous synergy between the two companies," said Jodie C. Getter, a healthcare industry pioneer who serves on iBX's advisory board and was instrumental in bringing iBX and ITS together. "ITS is in the business of selling and managing transcription services. iBX has the technology platform needed to expand the business. It's a perfect match." Getter is Vice President of GHC, a Coral Springs company that specializes in due diligence for healthcare mergers and acquisitions, on-site project management and corporate restructuring services.

If approved, the ITS transaction would be the second major acquisition for iBX in recent months. In October, iBX Group completed the acquisition of Jacksonville, Fla.-based Florida Health Source, LLC, a worker's compensation referral network for rehabilitation services throughout the state. The company's management team said it expected more than $1 million in revenue over the first 12 months. Florida Health Source is now a wholly owned subsidiary of iBX.

# posted by Medical Information : 5:11 AM