About the transaction
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.
The acquisition is expected to expand top-line revenue while accelerating generation of positive EBITDA, providing a foundation for accelerated growth.
Atlanta-based Avelead, founded in 2014, develops technology solutions that automate and improve the hospital revenue cycle, enabling hospitals to recognize lost revenue. The acquisition adds successful, SaaS solutions with an aggregate annual recurring revenue (ARR) run rate of $5.7 million as of June 30, 2021. Avelead’s total revenue for the twelve months ended June 30, 2021 was $10.2 million, $4.7 million of which was from software subscriptions. Avelead’s software solutions are complementary to Streamline’s, with solutions positioned in the revenue cycle adjacent Streamline’s eValuator pre-bill coding audit technology. These solution sets are currently utilized in some of the largest hospital systems 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 by a $10 million term loan from Bridge Bank, cash on Streamline’s balance sheet and restricted shares of Streamline’s common stock.