Toronto-based MindBeacon Holdings Inc. acquired Las Vegas-based Harmony Healthcare LLC in a deal that closed Monday.
Harmony Healthcare was an entity formerly operated by Franklin, Tennessee-based Acadia Healthcare Co. Inc. Public filings for the company show that Harmony Health was a DBA of the Acadia subsidiary PHC of Nevada Inc. as recently as the end of 2020.
An advisor to MindBeacon (TSX: MBCN) said that the company would not disclose who advised the parties in the deal nor how it was financed, adding that more details about the acquisition would come out in a pending third-quarter financial statement.
The advisor declined to specifically confirm that Acadia Healthcare was the selling entity of Harmony Healthcare. A representative of Acadia Healthcare has not yet acknowledged a request for comment. However, in Acadia’s press materials, it refers to itself as the “largest stand-alone behavioral health company in the U.S.”
MindBeacon’s press release announcing the deal states that it acquired Harmony Health from the “largest pure-play provider of mental health and substance abuse treatment in the Unites [sic] States.”
Harmony Healthcare provides mental health and addiction treatment to children, adolescents and adults. Its services also include employee assistance programming (commonly known as EAPs), individual and group therapy, medication management, substance abuse programs, crisis management and inpatient, utilization review and utilization management services.
“We’re thrilled to have Harmony, its CEO Allen Flagg, and the Harmony leadership team join the MindBeacon family,” Dan Clark, CEO of MindBeacon, said in the release. “I’ve followed Harmony for the last several decades and long respected the strong customer loyalty they have built based on their clinical excellence, proven outcomes and unwavering dedication to customer service.”
The deal gives MindBeacon a presence in the U.S. as well as additional scale on the North American continent. MindBeacon calls the deal “an important milestone” in its expansion strategy in the news release.
The advisor said that the Harmony Health deal also gives MindBeacon access to hundreds of additional mental health care providers within its network. He also said that MindBeacon found Harmony Health’s tenure of over 30 years in operation and opportunity for revenue diversity appealing. Similarly, Harmony’s reputation with large clients such as government entities, self-insured companies and marquee health plans made it a desirable acquisition target.
MindBeacon is a virtual-based cognitive-behavioral therapy provider. Its services include self-guided psychoeducational and wellness content, peer-to-peer support, therapist-guided programs and live therapy sessions. It also works with employers, insurance carriers and government ministries.
According to public filings, MindBeacon garnered revenue for the second quarter ended June 30 totaling $5.6 million and posted a $3.6 million loss. For 2020, its revenue totaled $10.5 million while it posted a net loss of $10.2 million. The company raised about $74.7 million in December 2020 in an IPO on The Toronto Stock Exchange. All references to dollars are to Canadian dollars.