Agility Health Inc, a provider of physical rehabilitation and software services geared toward patients, healthcare providers, and employers, has entered into a letter of intent to acquire 100% of an undisclosed target company (the “Target”), reported to be a leading provider of contract physical rehabilitation services in the US.
As stated in a news release issued by Agility Health, the total acquisition consideration of $20.8 million cash at closing represents less than five times the anticipated pro forma EBITDA of the combined entity. Additionally, the acquisition would expand Agility Health operations to more than 200 sites across 26 states with more than 1,800 employees providing services for approximately 2 million patient visits per year, the release notes. The acquisition will be immediately accretive to Agility’s earnings with pro forma 2013 annual revenues assuming completion of the acquisition in excess of US $100 million, the release says.
The release goes on to state that the closing of the acquisition, expected to occur in the third quarter of calendar 2014, is subject to confirmatory due diligence and the satisfaction of certain conditions customary for transactions of this nature.
Steven N. Davidson, CEO, Agility Health, says the acquisition would be a key milestone in Agility’s mission to become a national presence in the physical rehabilitation market, “with revenues having grown under Agility’s current leadership from US $20 million in 2003 to what would be over US $100 million following the acquisition. Our business plan and our review of the market call for Agility to make additional acquisitions of this size and quality, and we are thrilled to be taking another step toward realizing that vision,” Davidson says.
Agility Health, via its subsidiary and principal operating entity, Agility Health LLC, operates a multistate network of outpatient rehabilitation clinics and provides contracted services to hospitals, nursing homes, and other institutional clients. The organization targets care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and a variety of other injuries and conditions.
[Source: Agility Health]