CareCentrix, Inc., an independent home-centered platform that coordinates home-based care for health plans, patients, and providers, announced that Walgreens Boots Alliance (Nasdaq: WBA) has made a majority investment in the company. CareCentrix manages care for 19 million members through approximately 7,400 provider locations, offering a suite of services needed, on an integrated basis, to support emerging home care models, including care transitions, home nursing, durable medical equipment, home infusion, and in-home palliative care.
Payer Services EBITDA Multiples
According to a presentation prepared by Walgreen's, the first 55% stake was acquired for ~$330m cash, implying an approximately $800m enterprise value. Combing through the purchase price allocation, the actual numbers worked out to $327m cash, $4m contingent consideration, and $66m of share-based compensation awards, resulting in total consideration of $397m for the initial stake. As outlined in the presentation, the deal included an option to purchase the remaining 45% stake at 12x EBITDA in the first half of 2023, which ultimately was exercised for $378m on March 31, 2023. As a result, total consideration was $775m, for a business that appears to have generated approximately $70m of EBITDA in the LTM ended 3/31/2023 ($378m / 45% / 12x), implying a total multiple of 11.1x EBITDA.
Other Payer Services Deals
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The Scope Research Healthcare M&A Valuation Database currently has financial details for 131 population health and payer services deals going back to 2010, 78 of which include reported EBITDA multiples. The population health / payer services data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
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