(By Balaseshan) Examworks Group Inc. (NYSE:EXAM) said it entered into the independent medical examinations services market in Australia with the aquisition of 100% share capital of MedHealth Holdings Pty Ltd.
ExamWorks closed the acquisition of MedHealth for an all cash purchase price of about Australian dollar 93 million. ExamWorks financed the purchase price with proceeds from its senior revolving credit facility.
The company expects this acquisition to contribute between $4.0 million and $4.4 million of revenues to its third quarter results at an adjusted EBITDA margin between 18% to 20%.
As part of the transaction, ExamWorks also amended its credit facility to add the Australian dollar as an alternative currency and increased the alternative currency sublimit from $60 million to $100 million.
The acquisition expands ExamWorks' international footprint and increases its overall market presence in the IME services industry.
"MedHealth exceeded every criteria associated with our acquisition program. Just like Premex and MES, we believe that MedHealth is a unique business characterized by exceptional execution, outstanding financial performance, leading market presence and a shared vision that we believe will make it a very successful acquisition for ExamWorks," sauid
MedHealth, based in East Melbourne, Victoria, Australia, provides an integrated suite of medico-legal services including independent medical examinations, healthcare advisory services, strategies and solutions to corporations, insurers, government and the legal profession.
MedHealth has grown through a combination of organic and acquisition growth and maintains a leading position in the Australian market. Pro forma revenues and pro forma adjusted EBITDA for the trailing twelve month period ended June 30, 2012 were about $55.3 million and $12.6 million, respectively, using a conversion rate of 1.05.
EXAM closed Thursday's regular session at $12.87. The stock has been trading between $6.39 and $16.24 for the past 52 weeks.