Business
Kovo HealthTech Completes Acquisition of The Cvikota Company, Inc.
10th Successful Acquisition Expected to Immediately Increase Annualized Recurring Revenue to $...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Completes Acquisition of The Cvikota Company, Inc.10th Successful Acquisition Expected to Immediately Increase Annualized Recurring Revenue to $9M USD, +200% vs Fiscal 2020 RevenueVancouver, British Columbia--(Newsfile Corp. - November 22, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (the \"Company\" \"Kovo\") — a leader in healthcare Billing-as-a-Service — has officially completed its acquisition of The Cvikota Company, Inc. (\"Cvikota\" or \"Seller\").Acquisition Immediately Accretive The acquisition, which was previously announced on November 2, 2021, is expected to be immediately accretive to Kovo as Cvikota recorded Trailing Twelve Month (TTM) revenues of approximately USD$3 million with EBITDA of approximately 20% net of synergies. Kovo CFO Inder Saini, a health tech acquisition specialist, confirms the Cvikota transaction meets Kovo's acquisition strategy target of buying $1 of Annualized Recurring Revenue (\"ARR\") for every $1 investment of debt or equity to drive growth. As reported in Kovo's Q3 Financials, Saini says the acquisition has immediately increased the Company's ARR to approximately USD$9 million (CAD$11.2 million), an increase of about 200% versus fiscal 2020 revenue. Optimizing Technology Efficiencies and Trust \"The Cvikota Company is a trusted name with long-standing clients, a great team and a 50 year legacy of providing SaaS-style billing services for physicians, health providers and healthcare clinics across the United States. For Kovo and our shareholders, this acquisition delivers significant accretive revenue, with minimal dilution,\" says Kovo CEO Greg Noble, a Billing-as-a-Service healthcare technology leader and innovator.According to Noble, back office integration is already underway and the Company will continue to provide further updates on synergies and optimizations in the weeks ahead. \"We're excited to work together with Curt Cvikota and his team to phase-in Kovo's proprietary OneRev technology platform which offers improved efficiencies and our industry-leading sub 30 days cash conversion cycle to allow clients to focus on offering quality patient care,\" explains Noble. Under the terms of the Agreement, which has been approved by the TSXV, Kovo HealthTech Corporation, through a wholly-owned subsidiary (\"Buyer\"), purchased substantially all o...