UK-based Cello acquires MedErgy HealthGroup

The UK-based research and consulting company Cello earned a profit in 2010 after reporting losses in the previous year, and hopes to further boost the profitability of its operations through the acquisition of U.S. communications consulting company MedErgy HealthGroup.

Cello has purchased the communications firm for an initial $5.5 million, according to Daily Research News Online. MedErgy founder and chief executive officer (CEO) Julia Ralston and the rest of the firm's senior management team will receive 12 percent of the sale price, while MedErgy's owner, DVC Worldwide, will be paid the remaining 88 percent. Additional payments totaling up to $3.5 million may be payable in 2014 if the business hits performance targets under the new ownership, according to Research magazine. That sum, if paid, will be split equally between MedErgy senior management and DVC. 

MedErgy reportedly specializes in strategic consultancy, scientific communications, medical education and clinician learning. According to Cello chief executive officer (CEO) Mark Scott, the acquisition of the company will contribute to Cello's global expansion as a "leading healthcare research and communications business." 

"We plan to continue to internationalise our operating base in 2011 and strengthen our focus on our core client sectors. The acquisition of MedErgy, announced today, will accelerate this process," he added.