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Med Diversified Woos Addus Health Care

Continuing to diversify by acquistion, Med Diversified , an Andover, Mass., application service provider, close to buying Addus Healthcare, a Palatine, Ill., provider of home health care services.

The offer is comprised of $57.5 million in cash and up to $5 million in stock.

"After reviewing Med Diversified's financial acquisition strategy and their availability of funding, we are confident that the merger will be completed swiftly and successfully," said W. Andrew Wright, Addus' founder, majority shareholder and CEO.

Talks between the two companies began in August. Med Diversified however, wanted to be sure it was ready to integrate the companies.

Addus was founded in 1979 and employs 23,000 people in 25 states. Med Diversified sees it as a match for its software which links doctors, hospitals, clinics and insurance companies.

"Addus and Med Diversified will lower costs and improve patient care, as well as drive value to our customers and shareholders," said Frank P. Magliochetti, Jr. Med Diversified's chairman and CEO.

The pickup is among several that the company is pursuing as part of its health care technology and services approach. Earlier this year, Med Diversified bought Chartwell, a Lowell, Mass., administrative and operations management firm in a deal worth $90 million at the time.

Shares of MED closed down 0.13, or nearly 12 percent, to 1 on Tuesday. In the last 52 weeks, the issue has ranged from 0.375 and 4.51.