(RTTNews) – Medical transportation manager Providence Service Corp. (PRSC) announced Tuesday that it entered into a definitive agreement to acquire Simplura Health Group, which operates a large network of home health and personal care agencies across seven states, from One Equity Partners in an all cash transaction at an enterprise value of $575 million, subject to customary purchase price adjustments.
Simplura provides over 20 million hours of non-medical personal care annually to primarily Medicaid patient populations, including seniors and disabled adults, in need of care monitoring and assistance performing daily living activities in the home setting.
This combination unifies two social-determinants-of-health pioneers that share a common mission, that provide value-based care and solutions to similar vulnerable patient populations, and that partner with many of the same payor groups.
Providence expects the transaction to be immediately accretive to its adjusted earnings per share and project a short payback period due to Simplura’s attractive cash flow profile. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions.
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