- Quipt (QIPT) has expanded its presence in California by acquiring NorCal Respiratory
- Consideration was US$3.1M in cash
- NorCal reported unaudited trailing 12-month annual revenue of US$3.2M with anticipated adjusted EBITDA of US$650,000 post integration
- The acquisition adds over 600 physicians and over 3,600 patients to Quipt’s growing network
- Quipt Home Medical provides in-home monitoring and disease management services for patients in the U.S.
- Quipt (QIPT) is up by 2.34 per cent trading at $6.55 per share
Quipt (QIPT) has expanded its presence in California by acquiring NorCal Respiratory.
Consideration was US$3.1M in cash.
NorCal reported unaudited trailing 12-month annual revenue of US$3.2M with anticipated adjusted EBITDA of US$650,000 post integration.
It operates three locations in northern California backed by several important insurance contracts, bringing Quipt’s national location base to a total of 90.
The acquisition adds over 600 referring physicians, bringing Quipt’s national referring network base to over 19,600, and increases Quipt’s active patient count by over 3,600 to approximately 184,000 nationwide.
Northern California has a high prevalence of Chronic Obstructive Pulmonary Disease, a key target patient group, allowing Quipt to introduce its robust ventilation therapy program.
Quipt also sees revenue synergies through integration of its subscription-based resupply program.
The acquisition is in line with Quipt’s expansion effort to become a leader in respiratory homecare across the United States.
“California is an attractive market that we have been looking to further expand in with over 1.3M COPD sufferers across the state, and we are thrilled to be able to do so on the heels of this acquisition,” said Greg Crawford, Chairman and CEO of Quipt.
“We are pleased with the consistent performance across our entire operation year to date, including the return to 2 per cent sequential organic growth in our recently reported fiscal second quarter,” added Hardik Mehta, Quipt’s CFO. “The bullish regulatory environment, secular tailwinds and need for respiratory homecare have us perfectly suited to continue to accelerate our growth prospects.”
Quipt Home Medical provides in-home monitoring and disease management services for patients in the U.S.
Quipt (QIPT) is up by 2.34 per cent trading at $6.55 per share as of 11:42 am EST.
