Econ Healthcare EHG has announced its proposed acquisition of Ambulance Medical Service (AMS), an emergency ambulance and medical transport operator in Singapore, for an aggregate consideration of $8.8 million on Nov 29.
According to Econ Healthcare, its acquisition of AMS, which has over 15 years of expertise in the industry, marks a significant milestone for the company in its efforts to further strengthen its suite of healthcare services and ecosystem of care.
As at Nov 29, AMS manages a fleet of 57 ambulances. Its key market segments include provision of 24/7 ambulance transport services for both emergency and non-emergency cases, medical standby and coverage at events.
Based on AMS management accounts as at June 30, the book value of its issued capital stood at $11.0 million.
Ong Chu Poh, executive chairman and group CEO, says: “With AMS, we move forward with a shared strategic vision to establish a comprehensive ecosystem of healthcare services and offer an expanded range of high-quality services to our clients and partners. We will leverage our combined strengths to enhance our capabilities, foster innovation and excellence.”
In connection with the proposed acquisition, Econ Healthcare has also announced that it intends to diversify its business and expand its core business to include the provision of emergency ambulance and medical transport services.
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“The proposed acquisition and diversification underscores Econ Healthcare’s dedication to fostering synergies across the value chain, enhancing efficiencies and elevating the overall service experience for both clients and partners,” says the company in a press release.
Both the proposed diversification and the proposed acquisition are subject to the approval of the shareholders of the company.
Shares in Econ Healthcare closed unchanged at 20.5 cents on Nov 29.
