In-home monitoring and disease management service provider Quipt Home Medical Corp (NASDAQ: QIPT) has acquired a business with operations in Illinois.
What Happened: Quipt acquired the DME operation of the business for approximately $1.7 million in cash and the real estate for $0.5 million.
The transaction, post-integration, will increase Quip's annual revenues by approximately $2.5 million and adjusted EBITDA by $0.6 million.
Why It Matters: The acquisition adds a strategic location servicing Central Illinois, a heavily weighted respiratory product mix, and over 3,700 active patients.
The deal also provides Quipt insurance contracts. The business has a diverse payor mix and suite of products focusing on respiratory care, representing over 85% of the mix.
The acquisition provides immediate cross-selling and patient growth opportunities and adds patients to Quip's existing subscription-based resupply program.
"Since July, we have now completed six acquisitions with combined revenues of over $16 million and added over 30,000 patients. In this short period of time, we have amassed infrastructure in 4 new states and further penetrated existing states such as Illinois," said Greg Crawford, Chairman, and CEO of Quipt.
The Company says it has over $30 million in cash and a $20 million undrawn credit facility to work through the acquisition pipeline.
Price Action: QIPT shares closed 2.70% higher at $$5.33 on Monday.
Photo by Capri23auto from Pixabay
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