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Kovo HealthTech Signs Binding Acquisition Agreement
12th Acquisition Delivers Immediate Accretive Revenue and Positive EBITDA Vancouver, British Col...
About this update from Kovo+ Holdings Inc
[{"type":"text","content":"Kovo HealthTech Signs Binding Acquisition Agreement12th Acquisition Delivers Immediate Accretive Revenue and Positive EBITDAVancouver, British Columbia--(Newsfile Corp. - June 8, 2023) - Kovo HealthTech Corporation (TSXV: KOVO) (\"Kovo\" or the \"Company\") — a leader in healthcare technology and Billing-as-a-Service (\"BAAS\") — announced today it has entered into a binding agreement (the \"Agreement\") to acquire Kairos Billing Solutions LLC. (the \"Seller\" or \"Kairos Billing\").Kairos Billing is an innovative Utah-based digital medical billing provider that specializes in mental health billing solutions. Under the terms of the June 7, 2023 Agreement, Kovo has, through a wholly-owned subsidiary, purchased all of the assets of Kairos Billing Solutions LLC, including associated trademarks, trade names, brand names goodwill, customer lists, software and customer contracts.As consideration for the acquisition of Kairos Billing, the Company agreed to pay the Seller cash consideration of USD$150,000, subject to compliance with the policies of the TSXV. Under the terms of the deal, Kairos Billing's Founder, Jamie Rowley, the Women's Business Center of Utah's 2021 Entrepreneur of the Year, has agreed to stay on as an employee of Kovo for at least one year to ensure ongoing client service excellence. This acquisition is the second to be financed under the Company's new debt facility of USD$7 million, which closed on April 20, 2023 and still provides the Company with room to grow through future acquisitions. Greg Noble, the CEO of Kovo, notes, \"This acquisition highlights the opportunity for investors as well as operators in collaborating with Kovo. We are able to find accretive acquisitions with a rapid rate of return as we continue to scale up. Kairos will continue to grow with Kovo's marketing and administrative support.\" The acquisition is expected to be immediately accretive to Kovo and supports the Company's previously announced 2023 Annual Recurring Revenue** (\"ARR\") forecast of USD$11 million and return to positive Adjusted EBITDA*. Acquisition Anticipated to Deliver Immediate, Accretive Growth According to Kovo CEO Greg Noble, the well-established Utah-based business meets Kovo's previously disclosed acquisition strategy which targets buying $1 of ARR for every $1 investment of debt or equity and i...