Covetrus plans to acquire California veterinary tech company
Covetrus Inc. (Nasdaq: CVET), the animal-health company based in Portland, plans to acquire VCP, a California provider of technology and administrative services for pet wellness plans.
Terms of the purchase agreement were not disclosed in a news release Wednesday. Covetrus expects the deal to close in the third quarter of the year, and said the transaction will not affect the company’s 2021 earnings guidance of $245 million to $255 million.
VCP, operated by H3 Financial Services Inc., of Irvine, Calif., serves roughly 1,000 veterinary practices and supports wellness plans for more than 350,000 pets, according to the release.
The plans cover a range of pet health services, such as preventive care, dental care and diagnostics, as well as pet boarding and grooming. Integrating the VCP platform with Covetrus’ veterinary practice management and prescription management software will help the company better serve practices and their clients, Covetrus said.
“By adding VCP’s technology to our software portfolio, we’re making wellness truly accessible for both practices and pet parents, which is key to helping veterinarians strengthen their relationships with their clients, improve clinical quality and extend affordable care,” President and CEO Ben Wolin said.
Bob Richardson, VCP co-founder and president, said, “Covetrus is a natural fit as VCP prepares for the next stage of our journey. Covetrus offers the opportunity to bring our comprehensive wellness solution to the forefront by integrating with their powerful practice management solutions. This integration will deliver new levels of ease and convenience for clinics and facilitate more care.”
Richardson will continue in his current role after the acquisition is complete, the release said.
Pet wellness is estimated to be a $50 billion market in the U.S. Practices adopting the VCP platform have reported up to 10% revenue growth in the first year, according to Covetrus.
The company has 5,500 employees and provides technology and services for 100,000 veterinary practices worldwide. Covetrus last month reported first-quarter net sales of $1.1 billion, an increase of 3% compared to the first quarter of 2020. Earlier this week, the company announced new leadership for its international markets.
Most Recent
Most Recent
0 Comments