- Kovo HealthTech Corporation (TSXV:KOVO) has announced it has completed its acquisition of Midwest Medical
- The company anticipates the acquisition of Midwest Medical Billing, Services will boost revenue by roughly 34 per cent
- Midwest Medical is a Revenue Cycle Management specialist firm that provides RCM services for over 100 clients
- As per the acquisition, Kovo HealthTech, through its subsidiary, purchased all of Midwest Medical’s assets
- Assets include associated trademarks, trade names, brand names goodwill, customer lists and contracts
- Shares of Kovo HealthTech are down 1.10 per cent to C$0.90 as of 12:32 p.m. EDT
Kovo HealthTech Corporation (KOVO) has completed its acquisition of Midwest Medical Billing, Service.
According to the press release, the company expects the acquisition of Midwest Medical will boost its revenue by roughly 34 per cent.
Based in Omaha, Nebraska, Midwest Medical is a Revenue Cycle Management specialist firm specializing in revenue cycle management and providing these services to over 100 clients.
As part of the acquisition, Kovo HealthTech — through its wholly-owned subsidiary — purchased all of the assets of Midwest Medical Billing, including associated trademarks, trade names, brand names goodwill, customer lists and contracts.
“Midwest Medical is a trusted name with long-standing clients. Working together, as the newest member of the Kovo family, we expect to introduce new efficiencies and digital technologies that will empower the Midwest team and its clients to continue to provide quality healthcare experiences. For Kovo and our shareholders, this is an important step in our long-term, acquisition growth strategy — and showcases the company’s focus on results,” Greg Noble, CEO of Kovo HealthTech, said in a press release.
Under the terms of the acquisition, the company paid to Midwest Medical cash consideration of US$50,000 and issued over 1 million common shares at a price of $1.01 per share, which will be subject to a four-month hold under applicable securities laws.
With its primary headquarters in Vancouver, BC, Kovo HealthTech is focused on revenue cycle management services, which is a system used in the US and at a global scale to track and manage patient care registration, services, billing and payments seamlessly.
Over the last fiscal year, Kovo HealthTech has completed nine acquisitions and achieved roughly 366 per cent revenue growth outside of the Midwest Medical acquisition.
Shares of Kovo HealthTech are down 1.10 per cent to C$0.90 as of 12:32 p.m. EDT.
