- Company closes acquisition of Tennessee-based Perimeter Pain and Primary Care Clinic previously announced on December 3, 2020
- Tennessee-based Perimeter Pain and Primary Care Clinic is an established medical practice servicing over 12,000 patients per year.
- In 2019, the clinic generated CAD 2.2 million in revenues and CAD 400,000 in EBITDA.
- This transaction will be immediately accretive to the Company adding complementary services and insurable revenue to the existing primary care model across 15 States.
Skylight Health Group Inc (CSE:SHG; OTCQX: CBIIF) ("SHG" or the "Company"), one of the largest multi-specialty healthcare systems in the United States, is pleased to announce that it has closed on the acquisition of Healthcare Resources Management LLC ("HRM") which operates Perimeter Pain and Primary Clinic ("Perimeter") in Cookeville, Tennessee. The Company previously announced the Letter of Intent with HRM on December 3, 2020. The completed acquisition of HRM expands the Company's bricks and mortar and telemedicine services to 15 States and will add 12,000 new patients to its current roster of 120,000.
HRM has been operating Perimeter in Cookeville for over 7 years with strong patient retention. Services to patients include primary care, chronic pain management, interventional procedures, weight management, regenerative medicine and aesthetics. Services provided by Perimeter are primarily reimbursed through insurance carriers including Medicare, Medicaid and other commercial payors.
The Company expects to see continued growth in patient registrations and visits as Perimeter continues to thrive among the challenges most clinics have faced due to the recent COVID-19 pandemic. Further, the Company will work quickly to expand on the current offering of services by leveraging its current telemedicine infrastructure to provide access to patients across the state of Tennessee. Services offered by Perimeter will apply to Skylight Health's entire patient base. These services are immediately accretive as they allow the Company to expand complementary billable services. Patients will continue to benefit from the expansion of services in-house. The Company will benefit by expanding the per patient insurable revenue share-of-wallet by retaining these services internally.
"Perimeter represents the first of complementary non-primary care acquisitions and is in direct alignment with our strategy to expand on services offered to our existing patient base nationally," said Prad Sekar, CEO, Skylight Health. "Adding vital services like chronic pain management, interventional procedures and other from Perimeter will benefit tens of thousands of our current patients and will be deployed nationally within the existing framework of payor contracts in each state we are organically establishing over the next year."
SHG has acquired 100% of the shares of HRM for a transaction value in cash of CAD 1.03 million representing an EBITDA multiple of 2.6x. Perimeter reported unaudited revenues in 2019 of CAD 2.2 million and net income of CAD 400,000.