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Kovo HealthTech (TSXV:KOVO) revs up acquisition pipeline; signs binding acquisition agreement

Health Care, Market News
TSXV:KOVO
24 April 2023 09:00 (EDT)

Source: Kovo Healthtech Corp.

Kovo HealthTech (KOVO) has signed a membership interest purchase agreement to acquire E&A Medical Billing Service and Software.

Under the terms of the agreement, the company has, through a wholly-owned subsidiary, purchased all of the membership units of E&A Medical, including associated trademarks, trade names, brand names goodwill, customer lists, software and customer contracts. Kovo has not assumed any long-term debt.

As consideration for the acquisition of E&A Medical, the company agreed to pay a cash consideration of US$2.7 million, subject to compliance with the policies of the TSXV.

According to Kovo’s CEO Greg Noble, the Arizona-based business meets the acquisition strategy set out by the company, which targets buying $1 of annual recurring revenue for every $1 investment of debt or equity and is anticipated to deliver immediate, accretive growth.

Kovo HealthTech Corp. (KOVO) is a healthcare technology company that specializes in Billing-as-a-Service, offering software-as-a-service (SaaS)-style recurring revenue contracts and software for more than 1700 U.S. healthcare providers. Kovo helps healthcare providers track and manage complex patient care registration, services, billing, and payments using its OneRev technology platform. Kovo currently processes over C$250 million in annual billing transactions for more than 3.5 million patients.

Kovo HealthTech Corp. (KOVO) opened trading at $0.175.

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