The Canadian-based NeuPath Health Inc. (TSXV:NPTH) is entering the healthcare M&A market with its deal for HealthPointe Medical Centres Ltd. NeuPath is Canada’s largest provider of chronic pain management services that operates under two leading brands in Ontario: Centres for Pain Management and InMedic Creative Medicine. NeuPath has 12 locations across Ontario with more than 100 licensed healthcare providers that provide care to over 11,000 patients annually.
Under the terms of the agreement, NeuPath will acquire 100% of HealthPointe for CAD 3.2 million upfront cash (U.S. $4.05 million) and up to CAD 1.5 million in potential milestones based on the achievement of certain financial results over a two-year measurement period. In addition, there will be approximately CAD 2.0 million in assumed debt from HealthPointe.
Based in Edmonton, Alberta, HealthPointe operates a 20,000 square foot facility in Edmonton, offering physician-based care services for a wide range of injuries and issues including chronic pain management, spinal injuries, sport medicine and concussions. Patients receive interdisciplinary care from HealthPointe’s roster of physiatrists, neurologists, medication management physicians, athletic therapists and nurses. The company generated $421,200 in EBITDA and $7.02 million in revenue in 2020. In addition to the medical clinic, HealthPointe also holds a minority equity interest in two physiotherapy and sports medicine clinics in Alberta.
The transaction will be immediately accretive and will improve NeuPath’s annual revenue run rate to approximately $44.46 million. The acquisition is the first step in NeuPath’s national expansion strategy as it tries to move beyond the Ontario marketplace, so we expect to see more deals from the company throughout the year. Check out our Healthcare Deals Database for all the latest updates.
