PointClickCare Technologies Inc. Ratings Placed On CreditWatch Negative On Acquisition, Higher Leverage

Ontario, Canada-based health care technology company PointClickCare Technologies Inc. (PCC) plans to acquire Audacious Inquiry to expand its customer network. Transaction terms were not disclosed, but we believe it could be leveraging based on PCC's recent history with debt-financed acquisitions and high valuation multiples in the industry. This also comes before PCC has significantly increased EBITDA from Collective Medical Technologies (CMT), which it acquired in December 2020. We placed the ratings on PCC, including the 'B+' issuer credit rating, on CreditWatch with negative implications. We plan to resolve the CreditWatch once we can fully assess details of the proposed transaction, including the impact on leverage, liquidity, and the business profile. NEW YORK (S&P Global Ratings) Feb. 2, 2022—S&P Global Ratings

...February 2, 2022 - Ontario, Canada-based health care technology company PointClickCare Technologies Inc. (PCC) plans to acquire Audacious Inquiry to expand its customer network. - Transaction terms were not disclosed, but we believe it could be leveraging based on PCC's recent history with debt-financed acquisitions and high valuation multiples in the industry. - This also comes before PCC has significantly increased EBITDA from Collective Medical Technologies (CMT), which it acquired in December 2020. - We placed the ratings on PCC, including the 'B+' issuer credit rating, on CreditWatch with negative implications. - We plan to resolve the CreditWatch once we can fully assess details of the proposed transaction, including the impact on leverage, liquidity, and the business profile. NEW YORK (S&P Global Ratings) Feb. 2, 2022--S&P Global Ratings today took the above rating actions. The CreditWatch placement reflects uncertainty about PCC's pro forma capital structure and the possibility...

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