Skylight Health Acquires Colorado Based Primary Care Clinic Group

Skylight Health (TSXV: SHG) this morning announced the closing of the acquisition of Rocky Mountain Health Care, a primary care provider in the state of Colorado. The acquisition sees Skylight bring seven additional primary and urgent care centres into its portfolio, with centres in both Boulder and Denver.

The firm was reportedly acquired for a total price of $13.5 million in the form of cash, with 20% of that figure held back to be paid in installments over the next two years. When originally announced, the firm was to be acquired for $14.3 million, which was effectively a 4.7x EBITDA multiple for the firms unaudited 2020 revenues. The transaction was also to originally include a three year sellers note for 60% of the transaction, however that appears to have since changed.

While Skylight did not reiterate the expected run rate from the transaction independently, the company did indicate that it expects its annual revenue run rate to amount to $56 million, which is pending the closing of all announced acquisitions to date.

Skylight Health last traded at $1.29 on the TSX Venture.

Information for this briefing was found via Sedar and Skylight Health Group. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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