Skylight Health Group (TSXV: SHG) this morning announced the closing of its acquisition of River City Medical Associates, a Florida-based clinic. The acquisition brings the firms total operations to sixteen states across the US.
The transaction is expected to be accretive to top-line revenue, as well as EBITDA, with the clinic reportedly generating $6.0 million in revenue for 2020, along with positive EBITDA of $1.35 million. The clinic currently has six locations across Florida.
Total consideration paid for the firm by Skylight amounts to US$4.4 million. Consideration is being paid via $2.9 million in cash, while the remainder is to be paid via the issuance of 374,167 common shares of the issuer at a price of $1.27 per share. The remaining portion will be paid via shares over five quarterly installments based on the ten day average trading price at the time of issuance.
The price paid by Skylight represents a 4.1x EBITDA multiple, while the transaction brings Skylight’s total revenue run-rate to an estimated $46.0 million as per the company.
Skylight Health last traded at $1.25 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.
