Atlanta, GA – ExamWorks Group, Inc. (NYSE: EXAM), a leading provider of independent medical examinations (IMEs), peer reviews, bill reviews and related services, recently announced the acquisition of Gould & Lamb, a leader in the Medicare compliance services market. The acquisition of Gould & Lamb establishes ExamWorks as a market leader in the Medicare compliance services market. This acquisition is consistent with ExamWorks’ successful execution of its growth and expansion strategy in areas necessary for its customers to manage cost and compliance requirements. Medicare compliance and related services are offered to the same types of customers ExamWorks already services, and like IMEs, the Medicare compliance services industry is characterized by a large number of small providers without the scale and geographic scope to adequately serve the increasingly complicated and demanding needs of large national clients.
ExamWorks also announced that it had successfully completed four other acquisitions in December 2013 and January 2014 strengthening its market position in key segments and geographies of the IME industry. The Company will provide 2014 guidance that incorporates the impact of acquisitions on its upcoming earnings call scheduled for February 25, 2014.
Gould & Lamb
Gould & Lamb is a leading national Medicare compliance service company serving the workers’ compensation and liability markets. Based in Bradenton, Florida, Gould & Lamb’s service portfolio includes Medicare Set-Aside and related services, which are necessary to comply with legal requirements such as Medicare Secondary Payer regulations. These services are not subject to Medicare reimbursement risk and are designed to reduce claim costs and expedite settlements.
Gould & Lamb generated adjusted annual revenues and adjusted EBITDA for 2013 of approximately $27 million and $9.5 million, respectively. Under the terms of the agreement, the Company agreed to pay $75 million in cash at closing plus an earnout not to exceed $18 million based on full year 2014 financial performance. ExamWorks financed the purchase price with proceeds from its senior revolving credit facility.
Commenting on the announcement, James K. Price, Chief Executive Officer of ExamWorks, said: “Consistent with previous acquisitions like MES Solutions, Premex Group and MedHealth, Gould & Lamb is the market leader, and serves the same types of clients as ExamWorks. ExamWorks’ nationwide sales force is the largest and most experienced in the industry, and we are excited about the opportunities that this transaction presents to both ExamWorks’ and Gould & Lamb’s clients in the areas of cost containment applications and evidence-based medical assessments.”
Of the acquisition, Deborah Pfeifle, Chief Executive Officer of Gould & Lamb stated: “Gould & Lamb clients will benefit, especially since the Company will continue as a stand-alone brand in the ExamWorks portfolio. It is a logical combination. Both companies serve the global property and casualty industry and third-party administrators, offer cost containment services to the same lines of business, and have strong management teams with deep experience in the insurance industry.”
Other Acquisitions
Since December 2013, ExamWorks completed the following individually insignificant acquisitions:
| Acquisition | Date of Acquisition |
| AGS Risk Limited (“AGS”) | December 10, 2013 |
| Evaluation Resource Group (“ERG”) | December 20, 2013 |
| Cheselden Limited (“Cheselden”) | January 13, 2014 |
| Newton Medical Group (“NMG”) | January 16, 2014 |
The aggregate acquired annual revenue and adjusted EBITDA of these acquisitions was approximately $17 million and $3.5 million, respectively. The aggregate purchase price of these acquisitions totaled approximately $16.4 million in cash. Additionally, two of these acquisitions contain earnout provisions based on future financial performance and other metrics. The profile of these acquisitions is consistent with management’s previously announced strategy to purchase small “tuck-in” companies thereby enhancing our global service offerings and strengthening our market position in the geographies served.
Commenting on the announcement, Richard E. Perlman, Executive Chairman of ExamWorks, said: “We are pleased to welcome these acquisitions and their professionals into the family of ExamWorks companies. ExamWorks has solidified its position as the global leader in IME services, and we have found the ideal partner in Gould & Lamb through which to offer Medicare compliance services. We anticipate that Gould & Lamb clients will value the full suite of IME-related services that ExamWorks offers and the exceptional security, compliance and oversight built into our IT infrastructure, which have become the new standards in our industry.”
Source: ExamWorks