Nova Leap Health Corp. said Oct. 7 that it acquired Chickasha, Okla.-based nonmedical home healthcare services company Around the Clock Home Care LLC.
The Canadian home healthcare services company had previously set the maximum total consideration of the deal for Around The Clock Home Care at US$660,000.
According to a Sept. 16 news release, US$345,000 in the deal is payable with cash on closing and up to US$315,000 by way of a three-year structured earnout.
Under the earnout, the maximum potential annual payout in each of 2020, 2021 and 2022 is subject to a ceiling of US$105,000 and is calculated based on gross service revenue of the acquired operations for the previous year, starting Oct. 1.
In addition, the earnout is subject to a floor such that no payments will be made in a given year if gross service revenue falls below about US$1 million for the past year.
