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Alternate Health, a diversified healthcare services company, has reached an arms-length agreement to acquire a 20 percent interest in Clover Trail Capital, a Texas-based investment company. The acquisition is valued at $5.5 million.
Clover Trail’s investments include a comprehensive laboratory, performing complex lab studies for both toxicology and blood, servicing hospital groups, private insurance groups and large clinics. The acquisition gives Alternate Health an ownership in Sun Clinical Laboratories, which is 40 percent owned by Clover Trail, and currently refers toxicology and blood samples to the Company’s subsidiary Alternate Health Labs.
Alternate Health has operations in the United States and Canada. In addition to laboratory services, it is a leader in proprietary software applications for the medical industry.
“We are delighted to be joining forces with Clover Trail,” said Bryan Korba, chairman and chief executive officer of Alternate Health. “It is an excellent opportunity for us to grow and increase the effectiveness of Alternate Health Labs, already a leading source of revenue for us and a key part of our strategy to fundamentally advance patient care.”
The Company funded the acquisition through an issuance of 4,557,150 common shares, subject to a four-month holding period and an 18 month term note of $1,993,750 payable to one of the sellers. After January 2018, the sellers have an option to put additional ownership of Clover Trail to the Company. Any future sales will be at a price based on a valuation by a mutually agreed independent business valuator.
“This is a winning agreement for both companies,” said Dr. Michael Murphy, who indirectly controls Clover Trail Capital and recently completed a Lab Development Agreement with Alternate Health. “Our goal is to make healthcare laboratory services more efficient and cost-effective, and with this move we take a major step in that direction.”
Alternate Health, Acquisition, M&A, Clover Trail Capital, Texas, US