Quipt Acquires Biomedical Services Company with Annual Revenue of $1.5 Million, Further Expands into Long-Term Care Facilities, Hospital Systems and Other Medical Facilities

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Quipt Home Medical Corp. QIPTQIPT announced that it has recently acquired a privately held biomedical services company with operations in the Southeastern United States, reporting unaudited trailing 12-month annual revenues of approximately $1.5 million and $225,000 in net income.

Acquisition Details

The acquisition provides Quipt a synergistic opportunity to expand into a brand-new service line of biomedical repair services for respiratory equipment, including preventative maintenance. Quipt will be able to assist healthcare providers in improving the operational efficiency of their respiratory equipment program. With the national footprint being formed and a robust operating platform in place, Quipt will be well-positioned to provide equipment management services for a range of healthcare providers.

The acquisition services a wide range of respiratory products, including ventilators, oxygen devices, CPAP/bilevel devices and more. This includes devices from both the acute and non-acute settings from within the home and hospital environments. The company’s focus on superior patient care and safety is at the forefront of this acquisition. The company sees an opportunity to further relationships with new and existing long-term care facilities, hospital systems and other medical facilities across the country.

Quipt will have the opportunity to acquire used equipment and repair in-house, allowing Quipt the ability to redeploy equipment on its patient population, thus providing the opportunity to lower equipment acquisition costs. Furthermore, Quipt will penetrate a new sales channel by engaging with customers in this new business unit. Quipt will have the opportunity to service medical equipment outside of its current product mix over time, providing additional growth opportunities. The acquisition serves as an additional organic growth driver as Quipt builds out this new service line.

Under the terms of the definitive purchase agreement, Quipt acquired the biomedical services operation for approximately $700,000 in cash. The acquisition is expected to increase Quipt’s annual revenues by approximately $1.5 million and net income by approximately $225,000.

“We are delighted to enter this segment of the market, a logical fit for us given the growing number of patients, and referral partners in our network, as well as the burgeoning amount of equipment deliveries we complete every year. Our robust operating engine allows us to synergistically add a new service offering to the platform, which can be rolled out efficiently throughout the entire organization. The opportunity to include annual preventative maintenance and repair services for respiratory equipment is timely and we feel we can penetrate new and existing long-term care facilities, hospital systems and other medical facilities with this additional service,” said Greg Crawford, Chairman and CEO of Quipt.

“We feel this segment can offer additional organic and inorganic growth opportunities and will be very nimble as we work to grow this segment of the business. The end of 2021 is providing Quipt significant momentum across the board and our current pipeline consists of companies reflective of all three tiers of our previously disclosed acquisition strategy and we are very optimistic regarding our opportunity to continue closing targets that fit the strategic vision we have.”

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.