NR 08:24 AM EDT, 05/03/2022 (MT Newswires) -- Skylight Health Group Inc. (SLHG.V), a multi-state primary care management group in the US, on Tuesday said it has executed a definitive agreement to acquire NeighborMD (NMD) which will close concurrently with a debt facility of US$20 million that the company has arranged with a New York-based lender.
Total consideration for NMD will be US$8 million cash. The US$20 million debt line facility, which will close at the same time, allows Skylight to draw down US$10 million to fund the acquisition, including working capital to support integration costs and operating expenses. The term of the facility is for three years.
Based in central and southern Florida, NMD operates nine practices offering primary care services to over 5,000 lives. Within these, NMD has over 1,100 MA lives in full-risk contracts with two leading healthcare payors in Florida, Humana, and CarePlus. Of the Medicare Advantage lives at full risk, NMD currently sees an average reimbursement of $10,000 to $12,000, per member/per year, and Skylight expects to receive the same, thereby providing the capital to focus on patient needs. While NMD has not yet generated profitability, with its scale in combination with Skylight and planned initiatives, it is expected to become profitable this year, Skylight said.
All key leadership and operational teams will continue with Skylight.