In a strategic move to fortify its position in the ever-evolving healthcare technology sector, CPSI (Computer Programs and Systems, Inc.), a community healthcare solutions company, has recently announced its acquisition of Viewgol, a provider of ambulatory revenue cycle management (RCM) analytics and complementary outsourcing services. Under the terms of the agreement, the purchase price is $36 million in cash, with an additional earnout of up to approximately $31.5 million based on a combination of achieving certain profitability metrics for 2024 and the creation of additional offshore resources supporting TruBridge.
RCM EBITDA Multiples
Exclusive of synergies resulting from the transaction and incremental amortization expense related to the acquired intangible assets, Viewgol is expected to generate adjusted EBITDA of approximately $4.5 million in 2024. This represents a range from 8x EBITDA if the earnout is excluded to 15x if the entire amount is included. While we wait for details related to the fair value of the earnout from the pending purchase price allocation (PPA), we have included 50% of the earnout for purposes of calculating total consideration, implying a multiple of 11.5x EBITDA.
About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details for 50 revenue cycle management (RCM) and healthcare billing deals going back to 2010, 37 of which include reported EBITDA multiples. The revenue cycle data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about your specific situation.