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.
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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.
