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Sep
19

Paradigm Outcomes acquired

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”

  1. 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?

    1. 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.

  2. 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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Joe Paduda is the principal of Health Strategy Associates

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