Operating a 20,000ft2 pain, spine, and sport medicine clinic in Edmonton, HealthPointe provides physician-based care services for a broad range of injuries as well as issues including chronic pain management, spinal injuries, sport medicine, and concussions.
It also provides assessment and rehabilitation services to clients with complex neck and back pain, soft-tissue musculoskeletal pain and other complex soft-tissue pain conditions.
Under the terms of the deal, NeuPath will pay nearly C$4.7m ($3.68m) of total cash consideration, which includes C$3.2m ($2.5m) of upfront cash payment that is subject to a working capital adjustment.
Depending on certain financial results over a two-year period, an additional cash consideration of about C$1.5m ($1.17m) will be paid.
HealthPointe co-founder Dr Dhiren Naidu said: “Partnering with NeuPath was a natural next step for HealthPointe. We are philosophically aligned with NeuPath’s vision for nationwide multidisciplinary care and we look forward to working with NeuPath to better improve both patient services and outcomes.
“We are confident this partnership will provide greater access to care for patients in the Edmonton region and Western Canada.”
The acquisition also includes the assumption of HealthPointe’s nearly C$2m ($1.57m) term debt.
According to NeuPath, HealthPointe has generated revenue of approximately C$9m ($7.05m) with an adjusted EBITDA margin of approximately 6% last year.
For the transaction, Baker McKenzie has served as legal advisor to NeuPath Health while Bennett Jones acted as legal advisor to HealthPointe.