HealthLynked Corp (HLYK), a global healthcare network focused on care management of its members and a provider of healthcare technologies that connect doctors, patients and medical data, today announced that it closed its acquisition of Cura Health Management, LLC (“CHM“) and its wholly owned subsidiary ACO Health Partners, LLC (“AHP”) on May 18, 2020.
“As we expand our global network and focus on improving care and reducing costs through our technologies and related services, it was a natural fit to acquire CHM and AHP. We believe our ACO division will bring significant value to our patients and physician members around the globe,” said Michael Dent, M.D., HealthLynked’s Chairman and CEO. “Closing the acquisition demonstrates HealthLynked’s skill in executing its M&A strategy even during the COVID-19 pandemic.”
Unaudited Financials. CHM’s unaudited consolidated revenue for 2019 and 2018 were $2,075,607 and $2,466,843 respectively. CHM’s unaudited consolidated adjusted net income for the same periods was $667,671 and $337,001, respectively. Anticipated unaudited consolidated CHM net income for the next twelve months is projected to be approximately $437,500. Unaudited assets of CHM as of December 31, 2019 were $661,069. We anticipate having the audit completed in the next 72 days.
Amendment to the Agreement. The acquisition cost of $1.75 million is a combination of cash, HealthLynked common stock, and a four-year performance-based earnout. HLYK and CHM mutually agreed to amend the definitive agreement at closing to defer a portion of the initial payment of cash and stock, an additional payment of cash and stock in September 2020 when the CMS final report of shared savings is received, and the remaining amount in a 4-year earnout. The total consideration of $1.75M did not change. Shared savings in 2019 and 2018 were $2.3M and $1.9M respectively.
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George O’Leary, Chief Financial Officer of HealthLynked, stated, “CHM and HLYK agreed that with the uncertainty around COVID19 and the desire to get started working together now, it made more sense to align our interests by delaying a portion of the upfront acquisition consideration until September, when there will be move visibility into the new normal of the ACO marketplace.” He continued, “We are very excited to bring the expertise of the Cura Team into the HealthLynked family. Scott Calhoun, our Corporate Controller, will be overseeing the audit and the transition into HealthLynked’s operating structure.”
Source: BioSpace