Assure Holdings to acquire Innovation Neuromonitoring assets

Assure Holdings Corp., a Nasdaq-listed provider of intraoperative neuromonitoring (IONM) and remote neurology services, today disclosed it has inked a Letter of Intent (LOI) for the acquisition of specific assets of Innovation Neuromonitoring.

The transaction, valued at roughly $1.2 million, will be executed in both cash and equity.

Established in 2016, Innovation Neuromonitoring is an IONM firm primarily serving Greater Dallas, Texas, and Charleston, South Carolina.

Innovation Neuromonitoring successfully performed over 4,000 IONM procedures in 2022, with approximately 51% of these procedures associated with commercial insurance payors. The company’s current team includes 18 full-time staff members, comprising 13 technologists that assist more than 50 surgeons across over 40 facilities.

Anthony Casarez — Innovation Neuromonitoring Founder said: “We are excited at the opportunity to join the Assure team given our shared core values of providing exceptional service to surgeons and care for patients.

“We are proud of the business we have built, and I believe the resources and expertise Assure provides will provide stability to our surgeon partners and opportunities for our employees, all while driving top and bottom-line growth.”

Assure Holdings‘ agreed purchase price comprises $800,000 in cash and $400,000 in common stock, subject to escrow and other requisite conditions. As per the LOI, Assure Holdings plans to acquire Innovation Neuromonitoring’s contracts, employees, business relationships, equipment, and additional assets. Approximately $500,000 of the cash portion will be disbursed over 24 monthly installments, subject to adjustments based on the volume of surgeries and the commercial payor mix.

John Farlinger — Assure Holdings executive chairman and CEO said: “The purchase of assets from Innovation is a strong strategic fit with our existing business in Texas and provides us with the opportunity to scale our operations rapidly. Innovation believes that they will service more than 3,000 surgeries this year.

“It will add density in the state of Texas, our largest market and it also extends our geographic footprint to South Carolina. Importantly, we are deploying capital in a manner that we believe will increase value for our current shareholders and help us move towards delivering positive cash from operations more quickly.”

The final form of the proposed acquisition, whether an asset or equity purchase, will be at Assure Holdings’ discretion at closing. The transaction is anticipated to be finalized in early July, pending customary closing conditions, satisfactory due diligence, and the negotiation and execution of a definitive asset purchase agreement.