Kovo HealthTech Corporation (TSX-V:KOVO) has confirmed that it is now focusing on evaluating potential acquisition targets that would help it expand its market presence in the Northeastern US.
The company said due diligence is underway on potential acquisition targets.
"Kovo is active in every region of the US and for the rest of 2022, we're looking at strengthening our team and client roster in the Northeastern USA," the company's CFO Inder Saini said in a statement, adding that the company will continue to keep investors updated throughout the summer as it proceeds through due diligence on a number of potential targets.
READ: Kovo HealthTech sees record revenue in 1Q on strong organic growth in its SaaS-style medical billing software
According to its CEO Greg Noble, although Kovo posted 246% year-over-year revenue growth in Q1 2022, healthcare outsourced billing historically experiences slightly reduced claims volumes early in the new year as insurance deductibles reset, before rebounding in spring.
He said that 2022 is following this trend. "Although global uncertainty, inflation, supply chain issues and continued staffing impacts related to the global pandemic continue to affect many industries, US healthcare Billing-as-a-Service continues to grow at a stable and predictable rate and as we moved into Spring, healthcare billing trended upwards as we anticipated and have seen in previous years," Noble added in a statement.
Kovo also said that as part of its stock incentive plan, the company has granted a total of approximately 495,384 common shares to its leadership team and staff based on the market price at closing on June 29, 2022.
Kovo is a growing healthcare technology company that specializes in Billing-as-a-Service offering SaaS-style recurring revenue contracts and software for more than 1700 US healthcare providers.
Contact the author at jon.hopkins@proactiveinvestors.com