Diversifying our revenue stream while
introducing the Syncordia Cloud features and benefits into an
additional operating environment to drive exceptional
results
TORONTO, March 21, 2016 /CNW/ - Syncordia
Technologies and Healthcare Solutions, Corp. (TSXV: SYN)
("Syncordia" or the "Company") today announced that it has entered
into a definitive agreement to acquire 80% of the issued and
outstanding membership interests in Billing Solutions, LLC
("Billing Solutions") for aggregate consideration of US$8.0 million, subject to a working capital
adjustment (the "Acquisition"). The consideration is comprised of
US$6.0 million in cash and a
subordinated promissory note in the principal amount of
US$2.0 million. Syncordia will have
an option to acquire the remaining 20% of the issued and
outstanding membership interests in Billing Solutions for a period
of two years commencing on the date that is two years following the
closing date of the Acquisition.
Founded in 2011 by Jimmy Rizzo,
Billing Solutions is a full-service third-party billing solutions
company based in Prescott,
Arizona, dedicated to the mental and behavioral health
industry. Billing Solutions, operating in 13 states, provides
revenue cycle management services, such as compiling, reviewing,
preparing, coding claims for submission and obtaining prior
authorizations. In the most recent fiscal year ended December 31, 2015, Billing Solutions had revenues
of approximately US$7.6 million.
Michael Franks, CEO of Syncordia,
says, "This acquisition represents another key milestone in our
strategy to aggregate high-quality, privately owned healthcare
companies in the revenue cycle, where Syncordia's proprietary
technology can be used as an accelerator. Jimmy has built a great
company and we look forward to working with him to implement the
Syncordia Cloud solutions and drive additional growth and
profitability in the business."
"Syncordia's approach to the revenue cycle and software
solutions is extremely impressive," said Jimmy Rizzo, CEO of Billing Solutions. "They
have a compelling execution strategy and vision and are well
positioned to be a driving force in the revenue cycle management
industry. The partnership between Billing Solutions and Syncordia
is highly complementary. We have the billing expertise, but
the Syncordia Cloud brings a level of technical software expertise
that has been missing from our organization for a long time and
will help us better serve our clients. This is also why I was very
excited to continue to own 20% of Billing Solutions."
Mr. Franks added: "Consistent with our three-pronged growth
strategy, we are focused on driving the organic growth of our
businesses and building out our SaaS solutions while also pursuing
additional acquisitions. Our pipeline of opportunities is strong
and we have multiple near-term catalysts that we believe will
demonstrate the continued execution of our plan."
Additional Transaction Detail. The Acquisition will be
financed with US$6.0 million cash on
hand. Additionally, Syncordia will provide Billing Solutions a
subordinated promissory note in the principal amount of
US$2.0 million maturing two years
after the closing date of the Acquisition and accruing interest at
9% annually, with interest and principal payable in one payment on
the maturity date of the note. The Acquisition is expected to close
on March 21st, 2016. It is
anticipated that, subject to certain customary approvals from the
TSX Venture Exchange, Mr. Rizzo will continue in his role as Chief
Executive Officer of Billing Solutions after completion of the
Acquisition.
About Syncordia Technologies and Healthcare Solutions,
Corp.
We are a technology enhanced revenue cycle management
("RCM") company focused on underserved niche segments of the
healthcare industry. We are building a diversified software and
services business by consolidating healthcare billing providers.
Our growth strategy is to acquire RCM businesses with and without
software and, improve their profitability by increasing revenues
and operating efficiencies using our software, and in time,
commercializing the Syncordia Cloud, our cloud-based software
offering, to provide customer demanded turn-key solutions from a
single provider and to address compelling RCM market
opportunities.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
About Billing Solutions LLC
Billing Solutions
(www.billingsolutions.net ) is a full service third party rehab
center billing solutions company, dedicated solely to the mental
and behavioral health industry. Billing Solutions has about 75
employees based in Prescott,
Arizona a short distance north of Phoenix, Arizona.
Forward Looking Statements
Certain statements herein may be "forward looking" statements
that involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or
achievements of Syncordia or the industry to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Forward
looking statements involve significant risks and uncertainties,
should not be read as guarantees of future performance or results,
and will not necessarily be accurate indications of whether or not
such results will be achieved. A number of factors could cause
actual results to vary significantly from the results discussed in
the forward looking statements. These forward looking statements
reflect current assumptions and expectations regarding future
events and operating performance and are made as of the date hereof
and we assume no obligation, except as required by law, to update
any forward looking statements to reflect new events or
circumstances.
This press release contains forward-looking statements and
information concerning the anticipated completion of the
Acquisition and the anticipated timing of the completion thereof.
There is no guarantee that the Acquisition will close at the
anticipated time or at all, including as a result of unforeseen
delays in obtaining regulatory approval. Accordingly, readers
should not place undue reliance on the forward-looking statements
and the information contained in this press release concerning the
Acquisition.
SOURCE Syncordia Technologies and Healthcare Solutions,
Corp.
