HOUSTON, Jan. 9, 2017 /PRNewswire/ -- Nobilis Health Corp. (NYSE MKT: HLTH) ("Nobilis" or the "Company") announced today that it has entered into a definitive agreement to acquire Hamilton Vein Center, a provider of clinical and surgical procedures for vascular disease. The acquisition adds four locations in the Houston area, one location in San Antonio and one location in Austin. San Antonio and Austin are new markets for Nobilis.
Hamilton Vein Center has approximately 19,000 in-network patient encounters per year. Upon closing, the Hamilton Vein Center business will increase Nobilis' in-network patient volume mix to over 50%. "This acquisition continues our strategy of adding substantial in-network revenues to the Nobilis business model. With significantly larger in-network targets in our acquisition pipeline we are positioned to effect material change throughout 2017," stated Harry Fleming, Chief Executive Officer.
In addition, Hamilton Vein Center founder, Carlos R. Hamilton III, M.D., will join Nobilis as Medical Director of Interventional Radiology in the Houston market overseeing vascular operations and development. Dr. Hamilton has built a premier, multi-regional vascular brand based on his eminent reputation as a clinician and innovator in these markets.
The company will acquire Hamilton for approximately $13.25 million, comprised of $8.25 million in cash and $5 million in the form of a convertible note. The note is convertible to cash or stock at the Company's election, and is payable in two equal installments over a two-year period.
In addition to operational, sales, and marketing efficiencies, Hamilton Vein Center affords Nobilis a network of clinical locations in desirable areas of growth and a chassis on which the company can continue to grow its direct–to-consumer vascular brand, Clarity. Hamilton Vein Center also adds a network of referring physicians with whom Nobilis can develop new relationships and expand patient acquisition opportunities. These synergies will generate additional surgical case volume and revenue for the Nobilis system. The merged system will drive favorable patient outcomes and enhance the overall patient experience.
"We are pleased to announce this agreement to acquire Hamilton Vein Center. Dr. Hamilton and his team have developed one of the largest vascular practices in Houston by delivering quality patient care with exceptional outcomes, making Hamilton Vein Center a great strategic and financial fit with our existing business," said Kenneth Efird, President of Nobilis. "Through this transaction we will expand our vascular brand, Clarity, into two new markets in Texas, and continue the trend of expanding the proportion of our business derived from in-network cases."
"We are excited to join Nobilis Health and become an important component of the growth of the Clarity brand," remarked Dr. Hamilton. "We look forward to expanding our business into other Nobilis markets and contributing to the further success of the company's vascular business."
About Nobilis Health Corp.
Nobilis (www.NobilisHealth.com) is a full-service healthcare development and management company, with 24 locations in seven states, including 4 hospitals, 10 ASCs and 10 clinics. In addition, Nobilis partners with another 38 facilities across the country. Marketing seven independent brands, Nobilis deploys a unique patient acquisition strategy driven by proprietary direct-to-consumer marketing technology, focusing on a specified set of procedures that are performed at our centers by local physicians.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Canadian and United States securities laws, including the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and may be identified by the use of words such as "may," "believe," "will," "expect," "project," "estimate," "anticipate," "plan" or "continue." These forward-looking statements are based on current plans and expectations and are subject to a number of risks, uncertainties and other factors which could significantly affect current plans and expectations and our future financial condition and results. These factors, which could cause actual results, performance and achievements to differ materially from those anticipated, include, but are not limited to our ability to successfully maintain effective internal controls over financial reporting; our ability to implement our business strategy, manage the growth in our business, and integrate acquired businesses; the risk of litigation and investigations, and liability claims for damages and other expenses not covered by insurance; the risk that payments from third-party payers, including government healthcare programs, may decrease or not increase as costs increase; adverse developments affecting the medical practices of our physician limited partners; our ability to maintain favorable relations with our physician limited partners; our ability to grow revenues by increasing case and procedure volume while maintaining profitability at the Nobilis Facilities; failure to timely or accurately bill for services; our ability to compete for physician partners, patients and strategic relationships; the risk of changes in patient volume and patient mix; the risk that laws and regulations that regulate payments for medical services made by government healthcare programs could cause our revenues to decrease; the risk that contracts are cancelled or not renewed or that we are not able to enter into additional contracts under terms that are acceptable to us; and the risk of potential decreases in our reimbursement rates. The foregoing are significant factors we think could cause our actual results to differ materially from expected results. However, there could be additional factors besides those listed herein that also could affect us in an adverse manner.
We have not undertaken any obligation to publicly update or revise any forward-looking statements. All of our forward-looking statements speak only as of the date of the document in which they are made or, if a date is specified, as of such date. Subject to a mandatory requirements of applicable law, we disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any changes in events, conditions, circumstances or information on which the forward-looking statement is based. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing factors and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed on March 15, 2016, as updated by other filings with the Securities and Exchange Commission.
Vice President, Corporate Development
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SOURCE Nobilis Health Corp.