Terveystalo has completed the acquisition of Finnish healthcare operations of Attendo

Terveystalo Plc Stock exchange release 28 December 2018 at 11:30 a.m. EET

Terveystalo has completed the acquisition of Attendo's Finnish Health Services and the combined operations start on 2 January 2019. Attendo's Finnish healthcare operations gain a strong Finnish owner in the transaction. The transaction improves Terveystalo's competitiveness and growth opportunities particularly within services offered to the public sector.

Based on the 2017 financials*, Terveystalo and Attendo's Finnish healthcare operations had combined revenue of EUR 924.4 million, adjusted EBITDA of EUR 112.4 million excluding synergies and adjusted EBITA of EUR 90.5 million excluding synergies. Terveystalo and Attendo's Finnish healthcare operations have over 12,000 professionals, some half of whom work as private practitioners.

  • The transaction bring together industry-leading competencies within healthcare with broad service offering and network across Finland
  • The consideration for the transaction (enterprise value) was EUR 233 million in cash, financed with debt. Based on the aggregated combined financial information*, Terveystalo would have a preliminary aggregated net debt of EUR 451 million with implied net debt to EBITDA of 3.5x as of 30 September 2018 (aggregated LTM adjusted EBITDA), excluding synergies.
  • The estimated annual cost synergies of around EUR 5 million are expected to be realized within 12 months of the implementation of the transaction.

*The combined financial information gives an indication of the combined sales and earnings assuming the activities were included in the same company from the beginning of the financial year 2017. The aggregated combined financial information is based on a hypothetical situation and should not be viewed as pro forma financial information as purchase price allocation, transaction costs and differences in accounting principles have not been taken into account.

"With this transaction, Terveystalo is strengthened as the healthcare service provider with most versatile and broad physical and digital offering to all customer segments in Finland. With this transaction, we become one of the largest providers of dental services in Finland and a major player in public private partnerships - both in specialty care and in outsourcings, says Yrjö Närhinen, CEO of Terveystalo.
"This puts us in a pole position to benefit of the major global trends in healthcare. We aim to be a leading provider in digital and preventive healthcare and wellbeing services by utilising artificial intelligence and harnessing health data to offer leading personalised services and healthcare innovations. With this transaction, we expect to create substantial value for our shareholders while the Finnish people benefit from a stronger, nationwide operator capable of delivering cost-effective and high quality versatile physical and digital services to all customer groups and for the citizens in different stages of life." says Yrjö Närhinen, CEO of Terveystalo.

Overview of Attendo's Finnish healthcare operations
Attendo's Finnish healthcare operations include primary care, specialist care, staffing and dental clinics and have revenue of EUR 235 million and adjusted EBITA margin of 7.5% in 2017. Approximately half of the revenue came from public pay and dental care outsourcings (seven full outsourcings under the "Kuntaturva" brand and 13 outsourced health centers) where Attendo's Finnish healthcare operation is the market leader with high quality and cost-efficient operations. Revenue from staffing operations was EUR 78 million in 2017. The remaining share of revenue is divided in private dental care and occupational healthcare. Approximately 85% of the services provided were publicly funded in 2017. The Finnish healthcare operations' staffing pool of general practitioners, specialists and dentists amounts to approximately 2,600 professionals.

Terveystalo Plc

Kati Kaksonen, Director, Investor Relations and Financial Communications
Tel. +358 10 345 2034

Nasdaq Helsinki Oy
Main media

Terveystalo in brief
Terveystalo is a listed company on the Helsinki Stock Exchange. Terveystalo is the largest healthcare service company in Finland with net sales and network. The company offers versatile primary and secondary health care services for corporate and private customers and the public sector. The nationwide network covers approximately 180 locations across Finland, complemented by 24/7 digital services.

In 2017, the Company had approximately 1.2 million individual customers and approximately 3.3 million doctor visits. Nearly 9,000 healthcare professionals work in Terveystalo, about half of whom are private practitioners. Terveystalo is a member of Association for Finnish Work. www.terveystalo.com