Business
Kovo HealthTech Corporation Completes Acquisition of Midwest Medical Billing, Service Inc.
9th Successful Acquisition Expected to Increase Annualized Revenue Run Rate to Approximately U...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Corporation Completes Acquisition of Midwest Medical Billing, Service Inc.9th Successful Acquisition Expected to Increase Annualized Revenue Run Rate to Approximately USD$5M Upon ClosingVancouver, British Columbia--(Newsfile Corp. - July 6, 2021) - Kovo HealthTech Corporation (TSXV: KOVO) (\"Kovo\" or the \"Company\"), a leader in Revenue Cycle Management (\"RCM\") and healthcare technology, announced today it has completed the acquisition of Midwest Medical Billing, Service Inc. (\"Midwest Medical\" or the \"Seller\"). Acquisition Expected to Increase Revenues by Approximately 34% The acquisition, which was previously announced on June 14, 2021, is expected to be immediately accretive to Kovo as Midwest Medical Billing recorded Trailing Twelve Month (TTM) revenues of $1.123 million USD with EBITDA of approximately 17% net of synergies. \"New Efficiencies\" Advance Kovo's Strategic Acquisition Strategy \"Midwest Medical is a trusted name with long-standing clients. Working together, as the newest member of the Kovo family, we expect to introduce new efficiencies and digital technologies that will empower the Midwest team and its clients to continue to provide quality healthcare experiences. For Kovo and our shareholders, this is an important step in our long-term, acquisition growth strategy — and showcases the company's focus on results,\" explains Kovo CEO Greg Noble. Omaha, Nebraska-based Midwest Medical is a Revenue Cycle Management specialist firm that has been in business for more than 11 years and provides RCM services for more than 100 clients. Under the terms of the acquisition, the Company has, through a wholly-owned subsidiary, purchased substantially all of the assets of Midwest Medical Billing, including associated trademarks, trade names, brand names goodwill, customer lists and customer contracts.Under the terms of the acquisition, Kovo: (i) paid to the Seller cash consideration of USD$50,000; and (ii) issued 1,111,881 common shares of the Company (the \"Consideration Shares\") at a price per Consideration Share of USD$1.01 (approximately CAD$1.20 per Consideration Share). All Consideration Shares will be subject to a four month hold under applicable securities laws. In addition, the Company granted 500,000 incentive stock options to the Seller, which are exercisable at CAD$0.77 per sha...