According to an announcement on Small Cap Network, Epazz Inc., a Chicago-based provider of cloud-based business software, plans to enter the medical billing market. The company signed a letter of intent to acquire a medical billing software company in the western U.S. The acquisition is expected to grow Epazz substantially by bringing in an additional $600,000 in revenue in the first year.

According to the announcement, the target company offers a unique and robust software product; the company has a history of positive cash flow and profitability. The strategic move opens the possibilities for cross-selling Epazz’s complementary solutions such as its Deskflex room-scheduling software and MS Health EMR software.

Epazz CEO, Shaun Passley noted, “With the synergies of our companies the customers can continue to look forward to innovative, effective and efficient software tools geared to enhancing their business process."

The move into the new market is expected to result in immediate growth in the company’s revenue and profit streams and expand the company’s customer base. Epazz reported revenues last fall up 1,000 percent since its initial public offering earlier in 2013.