GRAND RAPIDS, Mich. - Agility Health, Inc. (TSX-V:AHI) ("Agility Health" or the "Company"), a leading provider of physical rehabilitation and software services that benefit patients, healthcare providers and employers is pleased to announce that it has entered into a letter of intent to acquire 100% of an undisclosed target company (the "Target"), a leading provider of contract physical rehabilitation services in the United States. The total acquisition consideration of $20.8 million cash at closing represents less than 5 times the anticipated pro forma EBITDA of the combined entity and would expand Agility Health operations to more than 200 sites across 26 states with more than 1,800 employees providing services for approximately 2 million patient visits per year. The acquisition of the Target will be immediately accretive to Agility's earnings with pro forma 2013 annual revenues assuming completion of the acquisition in excess US$100 million.
The closing of the acquisition, expected to occur in the third quarter of calendar 2014, is subject to confirmatory due diligence and the satisfaction of certain conditions customary for transactions of this nature, including the execution of definitive agreements, TSXV and other corporate regulatory approvals, and the arrangement of adequate financing, among other conditions.
Steven N. Davidson, CEO of Agility Health said, "This would be an important milestone in Agility's stated objective to becoming a national presence in the physical rehabilitation market, with revenues having grown under Agility's current leadership from US$20 million in 2003 to what would be over US$100 million following the acquisition. Our business plan and our review of the market call for Agility to make additional acquisitions of this size and quality, and we are thrilled to be taking another step toward realizing that vision."
Expected Benefits of the Transaction:
• Agility would become one of the largest independent providers of contract physical rehabilitation services to acute care hospitals in the United States.
• Allows for immediate scale in revenue to over US$100 million
• Allows for immediate scale in EBITDA of approximately US$10M in adjusted EBITDA1
• Increases the footprint to over 200 sites across 26 states with approximately 2 million patient visits per year
•Strong cultural fit with a tradition of exceptional quality and service allows for cross-selling opportunities
•Immediately accretive to Agility