- Skylight Health Group (SLHG) has acquired NeighborMD (NMD) for $8 million
- It also secured a US$20 million debt facility with FLC Credit Partners, a New York-based lender
- All key leadership and operational teams will continue with Skylight
- Skylight plans to expand risk contracts to existing medicare members in Florida
- Skylight Health Group is a healthcare services and technology company
- Skylight Health Group Inc. closed trading yesterday at $1.14 with a 2.564 per cent loss
Skylight Health Group (SLHG) has acquired NeighborMD (NMD) for $8 million and secured a US$20 million debt facility.
“We are very pleased to close our largest acquisition to date and welcome the team at Neighbour MD into the Skylight Health Group,” stated Prad Sekar, CEO and Co-Founder of Skylight Health.
“Not only does this more than double our revenue run rate and strengthen our market share in Florida, but it also significantly accelerates our entry into full-risk in 2022, as originally planned for 2025,” he added.
Based in central and southern Florida, NMD operates 9 owned practices offering primary care services to over 5,000 lives.
Within these, NMD has over 1,100 MA lives in full-risk contracts with two leading healthcare payors in the Florida, Humana and CarePlus.
In addition, NMD provides complete management services for over 1,400 additional MA lives through its affiliated providers and practices.
Total consideration for NMD was US $8 million paid in cash at closing. Skylight financed this transaction with a drawdown of US $10 million from a US $20 million debt line facility with a FLC which will also be used for working capital to support integration and operational expenses.
The company will still have US $10 million and working capital available to fund additional acquisitions. Term of the facility is 3 years.
Principal will be amortized on a quarterly basis and subject to certain cash sweep triggers and a final balloon payment. Cash payments including interest will begin in July.
FLC has received additional consideration of 4,542,345 warrants priced at $1.17. The expiry date will be May 5, 2025,
Skylight Health Group is a healthcare services and technology company, working to positively impact patient health outcomes.
Skylight Health Group Inc. closed trading yesterday at $1.14 with a 2.564 per cent loss.
