Digital Ally Inc.’s (NASDAQ: DGLY) Healthcare Division Acquires Medical Billing Company in The Mid-West

Digital Ally Inc.’s (NASDAQ: DGLY) new healthcare business division, Digital Ally Healthcare, has announced the acquisition of a Mid-West medical billing company with revenues of almost $1 million. 

Digital Healthcare acquires medical billing companies. 

This family-owned firm has a long history of providing revenue cycle management (RCM) services to more than 40 physician clients in areas such as pediatrics, orthopedics, cardiology, and internal medicine. The acquisition was completed through a joint venture between Digital Healthcare and Nobility, LLC, an 8-year-old RCM company that serves the medical sector.

The acquisition price was $1.2 million, with around 70% paid in cash and the remainder paid over 30 months via an earnout promissory note carrying a 3% interest rate. The earnout note may be adjusted based on the acquired company’s client retention and future revenues. This is the first of two acquisitions Digital Healthcare announced, and it kicks off the joint venture’s operations. The other target acquisition has a letter of intent in place, and due diligence is underway.

Digital Healthcare making strategic acquisitions 

Stan Ross, Digital Ally CEO, said, “We are excited with our first acquisition. As we indicated in June we have capitalized our healthcare venture with $13.5 million to make strategic acquisitions of privately held RCM companies that will provide recurring revenues and consistent profits. The first acquisition is a seasoned company with a stable, diverse client portfolio and successful track record. Consistent with our business plan, we will implement cost reductions and economies of scale to expand profit margins after completion of the RCM company’s integration into our healthcare venture.”

Ross added that the acquisition is part of the earlier announced Digital Healthcare formation, and it’s an expansion into the healthcare segment alongside the Shield Health Protection Products line. He said that Digital Healthcare is targeting the purchase of accretive RCM businesses.  

Leave a Comment

Your email address will not be published.