Paradigm will be acquired by investment firm Omers, a Toronto, Canada headquartered company. Sources indicate the price was approximately 14 times earnings; by my calculation, the total valuation was above a billion dollars.
Till now, Omers had not been visible in the work comp services investment space. And, Paradigm was not “shopped” in the usual way; an investment bank is hired, books go out, bids are accepted, etc. The price is even more remarkable as there wasn’t an auction; the valuation continues what’s become the new normal pricing for work comp assets.
If it seems like you were just reading about a Paradigm acquisition…you were. The company just completed a deal to buy pain management network company AdvaNet.
Omers does own Premise Health, a worksite clinic firm, as well as two outpatient rehab and physical therapy companies – however sources indicate there are no plans for any collaboration or combination of assets.
What does this mean for you?
If you own a work comp services business – sell now!
5 thoughts on “Paradigm Outcomes acquired”
wow…mergers and acquisitions are on the rise. Glad I am retired and watching from the sidelines
Joe, is workers’ comp that profitable that a company would pay so much? Do injured workers lose out in this deal since Omers must make back what it spent on acquiring Paradigm?
Hello Frank – I don’t think this negatively affects patients; if anything I’d think more patients will be accessing Paradigm’s services. The company is well regarded for handling very complex cat claims.
Joe, I think there is a space for quality, flexibility and quick responses to customer needs that creates a space aside from size and private equity. I hope it is not all about earnings and multiples.
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