18th Sep 2015 07:54
LONDON (Alliance News) - Constellation Healthcare Technologies Inc Friday said it has bought Phoenix Health LLC for a maximum consideration of USD14.0 million in a cash and shares deal.
The US-based healthcare services company said it will pay 75% of the consideration in cash and 25% in Constellation shares, at GBP1.44 each for 1.6 million shares. It said the shares will be issued based on the fulfillment of certain revenue and earnings targets being met by Phoenix.
The cash part will be funded from the proceeds of an equity raise completed earlier in the year, as well as from internal cash from operations.
Constellation said that the acquisition will add a number of new areas of expertise to the company and will broaden the overall offering available through the group platform. It expects it to be immediately earnings enhancing.
In 2014, Phoenix made earnings before interest, tax, depreciation and amortisation of USD2.2 million, generated a revenue of USD9.8 million, and had net assets of USD1.1 million as at December 31.
"The Phoenix Health transaction is Constellation's fourth acquisition overall and the third since the IPO in December 2014. This transaction will allow CHT to develop an additional skill set and a lucrative revenue source in the workplace and automobile healthcare processing segment. This, coupled with efficiencies we will provide with our existing platform and technology suite, will make this acquisition accretive to shareholders and further cement our consolidated position of being one of the largest healthcare services companies in the US," Chief Executive Paul Parmar said in a statement.
Shares in Constellation were trading up 1.7% at 146.40 pence Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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