Atlanta-based healthcare and medical logistics contractor DLH Holdings Corp. (NASDAQ: DLHC) has purchased health information technology and program management services provider Danya for $38.75 million cash-and-stock in a push to expand both business’ federal market footprints.
DLH said Tuesday the deal value includes $36.25 million in cash from its existing balance, a term loan and revolving line of credit with the remaining $2.5 million in stock.
Danya will operate as a subsidiary of DLH, which estimated the combined company’s 2015 revenue at close to $100 million with backlog of nearly $300 million.
Founded in 1996, Silver Spring, Maryland-based Danya provides public health consulting and digital communications services to the Department of Health and Human Services and holds a prime contract with HHS to help monitor and evaluate grants for the Head Start program.
Danya’s customer base also includes the Centers for Disease Control and Prevention, U.S. Navy and Department of Homeland Security.
DLH said it aims to expand telehealth research services to the Defense Department and civilian agencies plus grow health IT and information systems work in an effort to become pure-play, technology-oriented healthcare and human services contractor for federal agencies.
The company holds contracts to support all seven of the VA’s Consolidated Mail Outpatient Pharmacy locations that help deliver prescriptions to former soldiers.
Tysons Corner, Virginia-based investment bank KippsDeSanto & Co. advised Danya on the transaction’s financial aspects while Vancouver, Canada-headquartered Canaccord Genuity acted in the same capacity for DLH.
As of 11:17 a.m. Eastern, shares in DLH rose 5.53 percent to $4.20 versus a 52-week high of $4.47.