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Quipt Home Medical Corp. (NASDAQ: QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is pleased to announce that it has recently acquired a privately held biomedical services company, with operations in the Southeastern United States, reporting unaudited trailing 12-month annual revenues of approximately $1.5 million, and $225,000 in net income.
Acquisition Details:
The acquisition provides Quipt a synergistic opportunityto expand into a brand-new service line of biomedical repair services for respiratory equipment including preventative maintenance. Quiptwill be able to assist healthcare providers to improve the operational efficiency of their respiratory equipment program. With the nationalfootprint being formed, and robust operating platform in place, Quipt will be well positioned to provide equipment management servicesfor a range of healthcare providers.
The acquisition services a wide range of respiratoryproducts including ventilators, oxygen devices, CPAP/bilevel devices and more. This includes devices from both the acute and non-acutesettings from within the home and hospital environments. The Company’s focus on superior patient care and safety is at the forefrontwith this acquisition and the Company sees an opportunity to further relationships with new and existing long term care facilities, hospitalsystems and other medical facilities across the country.
Quipt will have the opportunity to acquire usedequipment and repair in-house, allowing Quipt the ability to redeploy equipment on its patient population, thus providing the opportunityto lower equipment acquisition costs. Furthermore, Quipt will penetrate a new sales channel by engaging with customers in this new businessunit. Quipt will have the opportunity to service medical equipment outside of its current product mix over time, providing additionalgrowth opportunities. The acquisition serves as an additional organic growth driver as Quipt builds out this new service line.
Under the terms of the definitive purchase agreement, Quipt acquired the biomedical services operation for approximately $700,000 in cash, and the acquisition is expected to increase Quipt’sannual revenues by approximately $1.5 million and net income by approximately of $225,000.
Management Commentary:
“We are delighted to enter this segmentof the market, a logical fit for us given the growing number of patients, and referral partners in our network, as well as the burgeoningamount of equipment deliveries we complete every year. Our robust operating engine allows us to synergistically add a new service offeringto the platform, which can be rolled out efficiently throughout the entire organization. The opportunity to include annual preventativemaintenance and repair services for respiratory equipment is timely and we feel we can penetrate new and existing long term care facilities,hospital systems and other medical facilities with this additional service,” said Greg Crawford, Chairman and CEO of Quipt. “Wefeel this segment can offer additional organic and inorganic growth opportunities and will be very nimble as we work to grow this segmentof the business. The end of 2021 is providing Quipt significant momentum across the board and our current pipeline consists of companiesreflective of all three tiers of our previously disclosed acquisition strategy and we are very optimistic regarding our opportunity tocontinue closing targets that fit the strategic vision we have.”