Inventurus Knowledge Solutions (IKS) investor relations material

Deal rationale and strategic fit

• Acquisition creates an integrated healthcare platform by combining EHR and RCM capabilities, targeting rural, mid-sized, and community hospitals, with a focus on the U.S. market of 2,200 hospitals and $164 billion in revenue.

• The combined entity will support over 2,000 healthcare organizations and 150,000 clinicians, enhancing care delivery across ambulatory and acute care.

• Integrated solution enables seamless clinical and financial workflows, leveraging proprietary AI and human-led solutions to improve efficiency and outcomes.

• TruBridge’s dominance in the 0-50 bed rural hospital segment (40%+ market share) complements the acquirer’s ambulatory care focus, with minimal overlap and high relevance of existing capabilities.

• The deal aligns with a long-term vision to build a comprehensive care ecosystem and positions the combined entity as a leader in both rural hospital and ambulatory care markets.

Financial terms and conditions

• Enterprise value of $557 million, with $427 million equity value and $130 million net debt; TruBridge shareholders to receive $26.25 per share in cash.

• The acquisition will be financed primarily through new debt, including a term loan underwritten by Citibank, JPMorgan Chase, and Deutsche Bank, with total debt at closing expected to be just under $600 million.

• Debt secured for five years at SOFR plus 275 basis points, reducing as leverage decreases; initial leverage slightly over 3x EBITDA.

• Combined trailing 12-month revenue projected at $698 million and EBITDA at $159–186 million, with the deal expected to be PAT and EPS accretive at close or by FY27.

• Interest coverage at nearly 5x EBITDA pre-synergies; final debt and interest costs may improve as TruBridge reduces net debt before closing.

Synergies and expected cost savings

• Significant G&A and operational synergies anticipated, especially from integrating global delivery models, optimizing human-in-the-loop processes, and discontinuing ESOP and certain public company costs.

• G&A synergies expected within the first year; operational synergies (RCM transformation, tech modernization) to be realized over 2.5–3 years.

• Delivery transformation and tech-led efficiencies to drive margin expansion, targeting early- to mid-30% EBITDA margins within a few years.

• Cross-sell potential of $575 million+ in TruBridge client base for care enablement platform.

• Synergies to be realized through AI and global delivery, with a focus on scalable, efficient operations.