Skylight Health Group (TSXV: SHG) this morning announced that it will be acquiring three US-based primary care practices, while being extremely vague on details. The three practices appear to be independent of one another, with each currently having letters of intent in place.
What is known, is that the acquisitions will reportedly add over $10.0 million in revenue as well as positive EBITDA to the firms books, however its unclear what state they are even located in as a result of “confidentiality reasons.” Financial figures provided however are on an unaudited basis.
In terms of the cost of acquisitions, the facilities are to be acquired at a target closing price between 4x and 5x EBITDA, with the average purchase price being below 1x revenue. A mixture of cash, debt, and shares is reportedly being used to fund the transactions, with Skylight reporting an estimated $7.0 million in cash on hand on a post-closing basis.
Closing of the transactions are slated for some time in the second quarter. The company expects to have a revenue run rate of $56.0 million upon closing of the transaction, as well as other outstanding acquisitions.
Skylight Health last traded at $1.41 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.