Patient Home Monitoring announced that it executed a final, binding purchase agreement to acquire Sleep Management, a company operating in 19 states and headquartered in Louisiana. The business had annualized revenues of more than $42,500,000 and Adjusted EBITDA of more than $18,000,000. PHM retained its external auditor to conduct an independent financial review of Sleep Management. Sleep Management currently provides home based medical services in 19 states across the US.
The Company focuses on providing high margin ventilators to patients with chronic pulmonary obstructive (COPD) conditions. Total consideration paid is $36 million in cash and 42.75 million shares, representing less than 15% of PHM’s total outstanding common shares. The shares will be released from holds over a three year period. Closing of the acquisition will be subject to approval by the TSX Venture exchange and other standard conditions. All three owners are taking a portion of their consideration in stock and will stay on with PHM as senior executives post-acquisition.