ModivCare, a technology-enabled healthcare services company that provides supportive care solutions has signed a purchase agreement to acquire VRI Intermediate, a remote patient monitoring solutions provider.
The Terms of the acquisition were not disclosed.
As per the terms, ModivCare will acquire 100% of the equity stake in VRI Intermediate, subject to customary purchase price adjustments.
ModivCare said the acquisition adds a critical supportive care platform with unique data analytics to benefit payors and patients.
VRI Intermediate generated $56 million of revenue and $21 million of adjusted EBITDA for the twelve-month ended June 30, 2021. ModivCare intends to finance the acquisition with fully committed debt financing from Deutsche Bank Securities and Jefferies.
According to the press statement, the acquisition of VRI, expected to close in the third quarter, will advance ModivCare’s in-home supportive care powerhouse with a national footprint and strengthen remote patient monitoring capabilities.
The company said that the device-agnostic VRI remote monitoring solution facilitates over 2.5 million annual person-to-person patient interactions, actively monitoring around 155,000 patients.
Jason Anderson, Chief Executive Officer of VRI, commented, “We are excited to be joining forces with ModivCare, a pioneer in supportive care solutions that address the social determinants of health. Our technology and service offering will be highly complementary to ModivCare, and we believe it will have a significant positive impact on the patients ModivCare serves. We believe there is enormous potential through the combination of our organizations to advance supportive care and help drive value-based care solutions to payors through our unique patient engagement and data insights offering.”
Advisors include Deutsche Bank Securities serves as an exclusive financial advisor to ModivCare, and Gibson, Dunn & Crutcher serves as ModivCare’s legal advisor. TripleTree acts as an exclusive financial advisor to VRI, and Alston & Bird serves as VRI’s legal advisor.
One hundred thirty-six digital health companies were acquired in the first half of 2021 compared to 83 in 1H 2020.
Image Credit: Huma Health