Benzinga | Sep 7, 2021 02:32PM EDT

Digital Ally's Healthcare Unit Acquires Medical Billing Company For $2.9M

* Digital Ally, Inc's (NASDAQ:DGLY) new healthcare subsidiary, Nobility Healthcare, LLC, has acquired a second medical billing company in the Midwest.

* The purchase price was $2.92 million, with ~77% paid in cash at the closing and the balance through an earn-out promissory note bearing interest at 3% payable over 34 months.

* The acquired company had annual revenues of ~$3 million and provides revenue cycle management services (RCM) for over 40 clients located mainly in the Midwest.

* This latest acquisition gives Nobility Healthcare an anticipated annual revenue run-rate of ~$4 million.

* Nobility Healthcare recently entered into a letter of intent to acquire two additional medical billing companies with combined expected annual revenues of $3.7 million for purchase prices totaling $3.4 million and payment terms similar to the recently acquired RCM company.

* "We are excited with the rapid progress of our new healthcare subsidiary. It is implementing a roll-up strategy by targeting the acquisition of accretive privately owned RCM companies," stated Stan Ross, CEO of Digital Ally.

* Digital Ally held cash and cash equivalents of $58.28 million as of June 30, 2021.

* Price Action: DGLY shares are trading lower by 1.82% at $1.35 on the last check Tuesday.