ModivCare Expands Personal Care Segment with Acquisition of CareFinders

ModivCare Inc. (“ModivCare” or the “Company”) (Nasdaq: MODV), a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions focused on improving patient outcomes, today announced that the Company has signed a merger agreement to acquire CareFinders Total Care LLC (“CareFinders”).

CareFinders is a personal care provider in the Northeast, with a scaled presence in New Jersey, Pennsylvania, and Connecticut. CareFinders delivers approximately 10 million hours of care annually to over 7,500 patients through its more than 6,200 caregivers. CareFinders’ annual revenue is approximately $200 million, pro forma for recent acquisitions, generated primarily from Medicaid and Managed Care Organization payors. During the pandemic, ModivCare partnered with CareFinders to remove the barrier of transportation for its caregivers by providing more than 85,000 rides, which greatly assisted CareFinders in continuing to care for their patients in the home.

Under the terms of the agreement, ModivCare will acquire 100 percent of the equity interests in CareFinders for a purchase price of $340 million (subject to customary purchase price adjustments), inclusive of estimated $34 million of net present value tax attributes generated by the transaction, implying a net purchase price of $306 million. ModivCare intends to fund the transaction through a combination of cash on hand and the Company’s credit facility. The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions.

Once the acquisition of CareFinders is completed, ModivCare’s personal care segment is expected to include nearly 16,000 caregivers across 7 states, expecting to provide approximately 30 million hours of care to approximately 18,000 patients annually.

“ModivCare is leading the transformation to better connect people with care, through transportation, personal care, and nutritional meal delivery,” said Daniel E. Greenleaf, President and Chief Executive Officer of ModivCare. “The acquisition of CareFinders broadens access to in-home personal care solutions for patients and supports our strategy to expand on our personal care platform. We are evaluating an expanse of opportunities to continue this exciting and profitable growth. As we expand our footprint, we believe we will drive significant value for our patients, partners, and shareholders.”