Huntsworth plc entered into an agreement to acquire 80% stake in Navience Healthcare Solutions LLC from John Shamsey for $64 million
September 26, 2018
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Huntsworth plc (LSE:HNT) entered into an agreement to acquire 80% stake in Navience Healthcare Solutions LLC from John Shamsey for $64 million on September 27, 2018. The consideration for 80% of the equity of Navience consists of an initial cash consideration on closing of $24 million, subject to adjustment for working capital, together with deferred consideration based on a multiple of earnings for the two years ending 31 December 2019, which is subject to a cap of $40 million. The remaining 20% of Navience's equity will be subject to put and call rights that are exercisable in May of each calendar year commencing in 2022. It is intended that the Initial Consideration will be funded by a placing of new ordinary shares in the capital of Huntsworth plc to raise approximately £18 million ($23.58792 million). In the event that Huntsworth defaults in completing the acquisition, it will be liable to pay a break fee of $1 million. In 2017, Navience delivered revenues of $6.4 million and adjusted EBITDA of $3.8 million. Navience's gross assets were $2.5 million. Upon completion of transaction, John Shamsey, Founder and Owner of Navience, will remain with the business. The acquisition is conditional upon, amongst other factors, completion of the Placing. The acquisition is expected to be completed on or around 3 October 2018. Huntsworth plc expects the acquisition to be accretive to the Huntsworth's earnings in the next financial year.
Huntsworth Limited is a United Kingdom-based intermediate holding company. The Company is engaged in healthcare and communication activities. The Company, through its subsidiaries, is focused on health that provides marketing and medical communications services to healthcare clients, which are primarily large and mid-size pharmaceuticals and biotechnology companies. It also provides a range of communications and advisory services, including strategic communications, public affairs, investor relations and consumer marketing. The Companyâs financial instruments comprise bank loans, bank overdrafts, loan notes, and cash and short-term deposits. The Companyâs geographical areas include the United Kingdom, Europe, the United States and the rest of the world. The Companyâs subsidiaries operate in approximately 28 in the United Kingdom and Europe.
HUNTSWORTH PLC 
