Skylight Health Completes Acquisition of APEX Medical in Colorado with $2.5 Million in Revenue and Positive EBITDA
- Company closes acquisition of Colorado-based APEX Family Medical previously announced on November 5, 2020.
- APEX generated over $2.5 million in revenues in fiscal 2019 and $0.5 million in net income, servicing over 5,000 patients per year.
- APEX will strengthen SHG’s clinical footprint in Colorado, accelerating the launch of its insurable services multi-disciplinary platform to an existing base of 17,000 Colorado patients.
- In conjunction with recently acquired Texas, Washington and Tennessee clinics, this acquisition marks the 4th completed transaction of the 5 deals announced in 2020.
TORONTO, ON – January 5, 2021 – Skylight Health Group Inc (CSE:SHG; OTCQX: SHGFF) (“SHG” or the “Company”), one of the largest multi-specialty healthcare systems in the United States, is pleased to announce that it has completed the acquisition of APEX Family Medical (“APEX”) in Denver, Colorado previously announced on November 5, 2020. The acquisition of APEX strengthens the existing base of operations in the State. SHG currently operates 4 physical clinics and a telemedicine platform in Colorado providing care to over 17,000 patients. The addition of APEX brings existing relationships with payors and insurable services that will bolster insurable services for current patients.
APEX has been operating in Denver for over 30 years and has a growing patient base of over 5,000 from its operations. Services to patients are comprehensive and include primary care and wellness including psychotherapy, massage therapy and acupuncture. Within APEX there are opportunities for future growth including new providers to meet the growing demand from patients, extended hours, additional services, and increased use of telemedicine.
APEX offers the Company the opportunity to expand insurable services to its existing base of 17,000 Colorado patients. Further, the Company will be able to expand on the current offering of services at APEX by leveraging its existing telemedicine infrastructure to provide access to patients across the State. The Company will also evaluate the current services offered to determine growth in new and complimentary medical services, seek to add new lines of revenue from insurable services, and continue to expand overall patient care. The Company will also work to launch its subscription-based telemedicine offering at US$199/year designed to support the needs of uninsured Americans with urgent and acute care needs.
“We remain committed to establishing a national network of healthcare clinics to help millions of Americans gain access to affordable and accessible quality care,” said Prad Sekar, CEO, SHG Insights. “With the expansion of infrastructure in Colorado by way of acquisition, we significantly expedite our launch of insurable services by a minimum of 6 months adding vital services to our existing base.”
SHG has acquired 100% of the assets of APEX for a total transaction value in cash of $2.3 million to be paid in installments over a 6-month transition period. APEX reported unaudited revenues in 2019 of $2.5 million and net income of $500,000.