Quipt Home Medical (QIPT) has acquired a business with operations in Mississippi with 12-month annual revenues of approximately $2.7 million.
The acquisition adds two locations, over 4,000 active patients, more than 10,000 unique orders, and 590 unique referring physicians. The acquisition also provides Quipt with important insurance contracts and decades of operating experience. The acquired business offers a full suite of products with a focus on respiratory care.
The acquisition provides immediate access to additional markets in which Quipt intends to leverage its existing infrastructure to create cross-selling and patient growth opportunities. In addition, Quipt will add patients to Quipt’s existing subscription-based resupply program.
Quipt expects to generate strong revenue from this initiative.
Key numbers from the newly acquired entity:
- 150,000 current active patients
- 19,000 referring physicians
- 62 locations across 15 U.S. States
Quipt acquired the business for approximately $1.95 million in cash. The acquisition is expected to increase Quipt’s annual revenues by approximately $2.7 million.
In additional news, David Bachelder has been hired to serve as EVP of Operations. David is a results-oriented healthcare executive with a proven ability to achieve optimal performance, compliance and profits across multi-site operations. David is highly experienced in managing multi-million-dollar budgets, financials, sales, operations and clinical compliance.
David served as Regional Vice President for one of the largest home medical equipment companies in the industry. David will be key in our ongoing plan to optimize operations, technologies, systems, and processes.
Greg Crawford, Chairman and CEO of Quipt, commented on the news.
“We continue to focus on accretive acquisition candidates that fit our stringent acquisition criteria to build scale across the United States. Our proven integration strategy allows us to make tuck-in acquisitions like this to fill in attractive geographies, obtain important insurance contracts, add to our active patient base, and build out our referring physician network. With the closing of this transaction, we have reached a significant milestone of 150,000 active patients and 19,000 referring physicians.
I would also like to welcome David Bachelder as our EVP of Operations, we are extremely excited to add David at this important time, given his strong background and industry experience. David will be instrumental to our future growth and assist us in building our operating footprint throughout the United States.
On the heels of our entrance into Mississippi in July, this transaction further strengthens our overall interconnected healthcare network in the region and mirrors our expansion progress in Missouri, both of which will serve as a foundation for other new states, where we can grow organically and through economical bolt-on acquisitions. As we look at the last 90 days, we have completed 5 acquisitions with combined revenue of over $13.5 million, expanding us into 4 new states.”
Chief Financial Officer, Hardik Mehta added,
“This acquisition signifies our core strategy, which is to strategically expand our markets economically as we work towards our long-term goal of becoming a national provider of home healthcare in the United States."
Quipt provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market.
Quipt Home Medical Corp. (QIPT) is up 0.92 per cent, trading at C$7.67 per share at 9:50 am ET.