Healthways, Franklin, Tenn., has agreed to acquire healthcare consulting firm Navvis & Co., St. Louis, for $28.7 million in cash and stock, according to a Healthways news release (PDF).
Healthways to acquire consulting firm Navvis
For Healthways, a disease-management and wellness services provider, acquiring Navvis will enable the company to help its clients with clinical integration, physician alignment, leadership development and partnering strategies, according to the release. Navvis will continue to be headquartered in St. Louis and will continue to be led by Mike Farris, who is chairman and CEO.
Healthways will pay $23.7 million in cash and $5 million of its stock for Navvis and expects to close the deal by the end of August. Healthways expects the acquisition to have a negligible impact on earnings per share in 2011. For the six months ended June 30, Healthways reported net income of $9.9 million, down by more than half from the year-ago profits of $21.3 million. Revenue declined 6.2%, to $332.6 million. The company noted in its earnings release that revenue grew sequentially between the first and second quarters of 2011 as a result of new contracts signed early in 2011. Also, the company's results for the second quarter of 2010 include $4.2 million in one-time gains.
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