WELL Health Technologies (TSX: WELL) this morning elected to close the trading week out with the announcement of a small acquisition. The company has entered into a definitive arrangement to purchase a controlling stake of Doctors Services Group Limited, referred to as DSG, whom operates an uninsured services billing program.
The arrangement will see WELL take a 51% stake in the billing services firm, while the remaining portion of the firm is to be held by the founders of the company. The acquisition marks the company’s first step into the billings and backoffice segment of the healthcare space.
Consideration for the majority stake in the company is to consist of a cash payment of $475,000, as well as $475,000 in common shares and a performance earn-out of up to $475,000. The company will also receive an option to purchase the remaining portion of the company. The transaction is stated to be immediately accretive, with the company reportedly generating $450,000 in EBITDA on a normalized basis.
The transaction is expected to close in the second quarter of 2021.
WELL Health last traded at $7.37 on the TSX.
Information for this briefing was found via Sedar and WELL Health Technologies Corp. 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.