Capital Clarity Advises Streamline Health in its Acquisition of Avelead

Rhea-AI Summary

Streamline Health Solutions, Inc. (NASDAQ: STRM) has successfully acquired Avelead Consulting, LLC for a total transaction value of $35 million, which includes $20 million in cash and stock, plus a performance-based earnout of $15 million. This strategic acquisition aims to enhance Streamline's capabilities in improving revenue integrity for healthcare providers, especially in the current challenging economic environment. The deal will be financed through a mix of cash and restricted stock, reinforcing Streamline's commitment to revenue cycle optimization.

Positive

• Strategic acquisition of Avelead enhances Streamline's revenue integrity services.
• Transaction value of $35 million signifies strong market positioning.
• Expected synergies to accelerate growth in healthcare markets.

Negative

• Potential integration challenges with Avelead's operations.
• Financing through stock may lead to dilution for existing shareholders.

SAN FRANCISCO, Aug. 24, 2021 /PRNewswire/ -- Capital Clarity announced the close of Streamline Health Solutions, Inc.'s (NASDAQ: STRM) ("Streamline") acquisition of Avelead Consulting, LLC ("Avelead"), a recognized leader in providing solutions and services to improve revenue integrity for healthcare providers nationwide.

Terms of the deal include closing cash and stock consideration valued at $20 million, subject to customary post-closing adjustments for working capital, cash, debt and transaction expenses, and a performance-based earnout with an estimated value of $15 million. The acquisition is expected to be financed with a combination of cash and restricted shares of Streamline's common stock.

Tee Green, President and Chief Executive Officer, Streamline Health commented: "This acquisition better positions us to fulfill our mission to help providers improve their financial performance by ensuring the capture of compliant revenue – and the mitigation of over billing risk  – before a bill goes out the door."

"We have enjoyed working with John Cooper and Susan Blanco and the team at Capital Clarity on this transaction. They brought great value to us and our shareholder base with their understanding of our business and their transaction expertise."

"In the current provider environment, revenue integrity and RCM is more critical than ever. We recognized that Avelead would be a strong strategic fit for Streamline and will help accelerate growth in these markets," stated John Cooper, Managing Partner at Capital Clarity. "We were pleased to play a role in combining these two enterprises."

About Streamline Health
Streamline Health Solutions, Inc. (NASDAQ: STRM) is a healthcare industry leader in capturing, aggregating, and translating enterprise data into knowledge – providing actionable insights that support revenue cycle optimization for healthcare enterprises.   Streamline Health Solutions delivers integrated solutions and analytics that enable providers to drive reimbursement in a value-based world. For more information, visit www.streamlinehealth.net.

About Avelead
Avelead provides innovative technology solutions that automate and improve revenue cycle in healthcare. Avelead's SaaS cloud-based platform provides hospitals and health systems with solutions focused on key areas of Revenue Cycle: Patient Financial Services, Revenue Integrity, Revenue Optimization, and Cost Savings. Avelead's solutions allow providers to set the cruise control on their Clinically Driven Revenue Cycle.  Avelead – Automating Revenue Cycle. For more information about Avelead's services and solutions, visit  www.avelead.com.

About Capital Clarity
Capital Clarity offers a refined approach to investment banking that emphasizes long-term partnership with investors and management teams. Our leadership team has a combined experience of 80 years in financial advisory, mergers & acquisitions, corporate development and private equity. We combine advisory expertise with deep industry knowledge and long-standing buyer and investor relationships to create successful outcomes for our clients. Healthcare IT has long been one of Capital Clarity's primary areas of technology focus and expertise.

Capital Clarity Contacts
John Cooper
Managing Partner
coop@capital-clarity.com
(415) 683-0339

Susan Blanco
Managing Partner
susan@capital-clarity.com
(415) 320-1582

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SOURCE Capital Clarity, LLC

FAQ

What is the value of the STRM acquisition of Avelead?

The acquisition of Avelead by Streamline Health is valued at $35 million, which includes $20 million in cash and stock, along with a performance-based earnout of $15 million.

How will the acquisition impact STRM's business operations?

The acquisition is expected to enhance Streamline's capabilities in revenue integrity, thereby improving financial performance for healthcare providers.

When was the acquisition of Avelead by STRM completed?

The acquisition of Avelead by Streamline Health Solutions was announced on August 24, 2021.

What is the strategic significance of the Avelead acquisition for STRM?

Acquiring Avelead allows STRM to better serve healthcare providers by improving their revenue cycle management and ensuring compliance in billing.