By Sabela Ojea
Shares of OptimizeRx surged Thursday after the company said it is buying Medicx Health for $95 million and guided for higher revenue for the third quarter.
At 11:01 a.m. ET, shares were up 23% at $8.80. The stock has, however, dropped 48% since the year started.
The digital health company said it will pay for the acquisition, set to close in the fourth quarter of 2023, through existing cash resources, short-term investments, and proceeds of a new $40 million credit facility provided by Blue Torch Capital.
Certain members of Medicx’s management plan to invest about $10.5 million of their proceeds into OptimizeRx’s common stock.
“Medicx has a very healthy financial profile and we believe this acquisition will be transformative to our growth and profitability,” OptimizeRx’s Chief Executive Will Febbo said.
Additionally, the company said it expects to close the third quarter with revenue of $15.2 million to $15.5 million, up from reported revenue of $15.1 million a year ago.
Write to Sabela Ojea at [email protected]; @sabelaojeaguix
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