Intellectual and developmental disabilities (IDD) providers I Am Boundless and Koinonia have announced their plans to merge.
The combined organization will operate under the Boundless brand. The joint company projects that it will surpass $135 million in revenue next year, making it the largest IDD provider in Ohio.
“We are so glad that we can come together with Koinonia because our organizations are very like-minded in serving the whole person across their lifetime,” Dr. Patrick Maynard, Boundless president and CEO, said in a statement. “Joining forces is a win-win that allows us to operate more effectively and pool our resources. We think this opportunity will benefit both the staff and those we serve.”
Founded in 1974, Koinonia is an Ohio-based nonprofit that offers residential, adult day care and career services, as well as behavioral and mental health care. It has roughly 300 staff members caring for more than 350 clients.
I am Boundless, which is also based in Ohio, provides autism services, primary care, dental appointments, job training, counseling and residential support to individuals with IDD. The nonprofit has been in operation for more than 40 years.
“Koinonia has a rich history of leading innovation, care and community integration among this population,” Diane Beastrom, Koinonia president and CEO, said in a statement. “This step builds on that history in an important move toward best-in-class, whole-person care. I am confident this new organization will serve as a national model for years to come.”
The deal, which is expected to close on Oct. 1, was facilitated by Consulting for Human Services (CFHS).
“The best part of my job is helping to make these kinds of matches,” Stacy DiStefano, CEO of CFHS, said in a statement. “With all national trends pointing toward a continued acceleration of provider consolidation, everyone made the wise choice to negotiate from positions of strength. CFHS is thrilled to be a part of helping these two great organizations come together. I congratulate the teams and look forward to the continued growth and success of this new combined organization.”
Deals in the IDD space have been much slower than other subsectors of the behavioral health industry. In the first half of 2023 there were just 7 IDD deals, according to a report from M&A advisory firm The Braff Group.
While IDD deals might be less common, this merger is representative of another emerging trend: M&A in the nonprofit behavioral health space. Matrix Capital Markets Group recorded 39 transactions last year that included nonprofit behavioral health targets, 42 deals that included nonprofit acquires, and 27 nonprofit mergers with other nonprofit organizations.
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