Israel's SHL Telemedicine Ltd. (SHLTN) continues to acquire companies, at a rate of at least one a year. The company’s last acquisition was in January 2014. SHL Telemedicine, which trades on the SIX in Zurich at a market cap of $91 million, acquired Germany’s GPH for €7.6 million cash. SHL Telemedicine specializes in providing remote diagnosis and monitoring services for heart and lung patients suffering from chronic heart failure (CHF) and chronic obstructive pulmonary disease (COPD).
Germany, which has undergone significant healthcare reform, is the company’s largest market, and this at least partially explains the acquisition of the German company. GPH’s service is called Cordiva, and through this service, the company provides daily TeleMedicine services to nearly 10,000 CHF patients. GPH is a subsidiary of US company Alere, and among its clients are Germany’s leading health funds, such as AOK.
SHL Telemedicine stated that in 2014, GPH revenue was €9.2 million, and net profit was €0.8 million. SHL Telemedicine co-CEO Erez Alroy said, “This acquisition strengthens our position as the leading provider of telemedicine services in Germany.”
SHL Telemedicine's previous acquisition was Germany's Almeda, which offered similar solutions to the Israeli company. This acquisition was not significant in its size, but over the course of last year, it alone accounted for between $7 million and $10 million in revenue from Germany. SHL Telemedicine's revenue in the third quarter of 2014 totaled $10 million, up 35% from the corresponding quarter. EBITDA was $1.7 million, more than double the $0.7 million in the corresponding quarter.
SHL Telemedicine has also been building towards its entry to the US market, which it began this year, and the company expects to have revenue from the US market already in the first quarter of 2015.
As of the end of the third quarter of 2014, Shahal had $19.5 million in cash. 58.9% of the company’s revenue in the first three quarters of 2014 were from its activity in Israel (compared with 79.9% in the corresponding quarter of 2013), and 41.1% was from operations in Germany (up from 20.1% in the corresponding quarter of 2013).
Published by Globes [online], Israel business news - www.globes-online.com - on March 23, 2015
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