The acquisition journey that began several months ago and involved Examworks Group, Inc. (NYSE:EXAM) and a private-equity firm has come to completion. Examworks will no longer exist as a standalone company and public trading in its stock officially ceased on July 27.
Examworks Group has been acquired by Leonard Green & Partners, L.P. As Examworks pulls its stock from the public market, its shareholders until the closure of the deal are redeeming their holdings for cash. Just before the deal closed, shareholders of Examworks had voted to give the board the green light to go ahead with the transaction.
$2.2 billion changing hands
Leonard valued Examworks at $35.05 per share, which puts the total value of the deal at $2.2 billion. As such, shareholders of Examworks are being paid $35.05 for every share of the company they own and the payout implies a 22% premium if you work out the average price of the stock over a period of 90 days before the deal was made public.
Examworks Group has said in a press release that the closure of the deal converts it into an indirectly-owned subsidiary of Leonard.
Acquisition of Prizm
Examworks’ decision to sell itself to Leonard came shortly after it completed the acquisition of bill reviews and peer review provider Prizm LLC, which is based in New Jersey. Prizm was said to have annual revenue of $10 million, according to EXAM.
For its part, Examworks Group generated revenue of $819.6 million in 2015 and adjusted EBITDA of $140.7 million. The adjusted EBITDA amount in 2015 rose 6.5% over the prior year’s amount.
Helping governments and insurance payers
Examworks’ independent review services are popular among government and insurance payers who take advantage of them to evaluate the accuracy and legitimacy of claims. As such, healthcare payers use Examworks’ solutions to try to lower healthcare costs by only paying for what ought to be paid for.
According to Examworks, it serves more than 6,000 clients worldwide and some of them include law firms and property and casualty insurers.