This just in – word is that One Call Care Management is up for sale, reportedly for a price in the $1.5 billion range.
Reuters just reported their sources indicate things are in the “exploratory” stage; if the sources are accurate, this would be the largest – by far – transaction in the work comp services business.
Odyssey Investment Partners has been carefully assembling OCCM by acquiring firms in the medical management space – DME/Home health (MSC), imaging (OneCall), dental (Express Dental), transportation/translation, ancillary services, and provider assessment/analytics (Harbor Health). Word is OCCM will soon be adding another translation firm to their portfolio; 3i is the most commonly cited target.
Odyssey has done very, very well in comp; they’ve purchased, grown, and sold York Claims/Risk and built OCCM into the largest and most profitable WC services company in a very short four years. With an EBITDA around $140 million and strong year/year growth, a 10x multiple is well within the realm of possibility.
With MSC’s acquisition just over a year old, and TechHealth to be added to the portfolio shortly, management is pressing ahead with their growth despite – or perhaps in part because of – a potential sale of the entire company.
I’d be remiss if I didn’t note this has not been confirmed by anyone at any of the firms mentioned above.
That said, kudos to OCCM, OCCM management, all the folks who work for OCCM’s companies, and Odyssey for building the first billion dollar business in work comp services.