Benzinga | Jul 7, 2021 08:34AM EDT

REPAY Reports Partnership With Credit Mgmt. Co.

Digital Ally, Inc. (NASDAQ:DGLY) (the "Company") announces that its new healthcare business unit, Digital Ally Healthcare ("Digital Healthcare"), has acquired a medical billing company located in the Mid-West with annual revenues of approximately $1.0 million. This closely-held company has a long track record and provides revenue cycle management services (RCM) for over 40 physician clients in diverse specialties, including orthopedics, pediatrics, internal medicine and cardiology. Digital Healthcare made the acquisition through its joint venture with Nobility, LLC, an eight-year old RCM company servicing the medical industry.

The purchase price was $1,200,000 with approximately 70% paid in cash at the closing and the balance through an earn-out promissory note bearing interest at 3% payable over 30 months. The earnout note is subject to adjustment based on future revenues and client retention of the acquired company. This acquisition is one of two target acquisitions previously announced by Digital Healthcare and commences the operations of the recently formed joint venture. The second target acquisition is under a letter of intent and due diligence is progressing.

"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, " stated Stan Ross, CEO of Digital Ally.

"As indicated in our earlier press release announcing the formation of Digital Healthcare, this is a further expansion into the healthcare market alongside our Shield Health Protection Products line. Digital Healthcare is implementing a roll up strategy by targeting the acquisition of accretive privately owned RCM companies. Through our joint venture, we plan to provide superior RCM services for maximum client retention after completion of the acquisitions while we implement appropriate cost reductions to increase profit margins," Ross continued.