HALIFAX, Nova Scotia, Oct. 01, 2018 (GLOBE NEWSWIRE) — NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a company focused on the home health care industry, has completed the acquisition of the business assets of Comprehensive Home Care (“the Vendor”) located in Deerfield, Massachusetts. The $1.6 million purchase price was paid with $0.61 million in cash, a $0.75 million demand loan from a Canadian Schedule 1 Bank and a $0.24 million promissory note issued to the Vendor. The execution of the definitive agreement and related information pertaining to this acquisition was previously announced on August 20, 2018. All amounts are in United States dollars (“USD”) unless otherwise specified.
“We are excited to work with the very talented and compassionate individuals at Comprehensive Home Care,” said Chris Dobbin, President & CEO of Nova Leap. “We will endeavor to support their ongoing work in making home care accessible to the terrific people of Massachusetts.”
Nova Leap incorporated a subsidiary, Nova Leap Health MA III, Inc., which has acquired the business assets of the Vendor, including customer contracts and intellectual property, and will continue to operate under the name Comprehensive Home Care. The acquisition represents Nova Leap’s sixth investment in New England and third in Massachusetts. Nova Leap now has approximately 550 employees in Vermont, New Hampshire, Rhode Island, Massachusetts and Nova Scotia.
Nova Leap Exceeds $14 million of Forecasted Annualized Recurring Revenue
The acquisition of the Vendor is expected to be immediately accretive and, when combined with existing Nova Leap subsidiaries, is expected to result in excess of 550,000 forecasted annualized recurring client service hours. Nova Leap’s forecasted annualized recurring revenue run rate is approximately $14 million following the acquisition of the Vendor’s business. Nova Leap’s recurring client service hours are paid primarily by clients, the Department of Veteran Affairs or through long term care insurance plans.
The forecasted annualized recurring revenue run rate disclosed in this release is the expected annualized recurring revenue based on the Company’s most recent month’s revenue for current operations multiplied by 12 plus the annual revenue based on the most recent financial information available for Comprehensive Home Care.
This article originally appeared in an article on GlobeNewsWire.