American CareSource Completes Urgent Care Asset Acquisition of Medac in North Carolina

American CareSource Holdings, Inc. (Nasdaq:GNOW), operating under the tradename GoNow Doctors (the “Company”), has closed an asset acquisition of Medac Health Services, P.A., (“Medac”) for a purchase price of $5.7 million. GoNow Doctors is an urgent and primary care public company trading on Nasdaq under the symbol “GNOW.” For over 30 years Medac has delivered high-quality, convenient medical care to members of its community, making it the provider of choice for urgent care services in Wilmington, North Carolina.

The Company acquired the Medac assets, which it will lease back to conduct daily business within the urgent care centers. The Company will now also assume management and operational support of Medac's four urgent care centers and its emergency medicine management business.

John Pappajohn, acting Chief Executive Officer and Chairman of American CareSource, elaborated on the acquisition: "Medac is comprised of an exceptional team of respected physicians. We are very pleased to be joined with them in our mission of providing quality care to patients.  A first-class operation with multiple well-situated locations, Medac is an established brand name in the Wilmington area.  As such, this asset acquisition fits our business objectives of acquiring and managing established urgent and primary care facilities.  We are confident that patients, doctors and shareholders will all benefit as we utilize our expertise to expand the Medac brand and franchise through additional strategic acquisitions and new center development.”

The Medac acquisition represents the Company's initial asset acquisition in the state of North Carolina. With the completion of this transaction, the Company now owns or manages 14 urgent and primary care centers across the southeastern and eastern United States.

The Company expects that it will add to these four locations by continuing its acquisition and new center development efforts in the greater Wilmington marketplace. Such efforts are part of the Company’s broader objective to become an urgent care leader in the eastern and southeastern United States.

Today there are approximately 10,000 urgent care clinics across the country, handling 160 million visits annually, and this number is expected to grow to more than 12,000 by 2019.

About American CareSource Holdings, Inc.American CareSource Holdings, Inc. owns and manages a growing chain of fourteen urgent and primary care centers operating under the tradename, GoNow Doctors and an ancillary services network that provides ancillary healthcare services through its nationwide provider network.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:Statements in this press release that are forward-looking are based upon current expectations, and actual results or future events may differ materially. Therefore, the inclusion of such forward-looking information should not be regarded as a representation by us that our objectives or plans will be achieved. Words such as “expects,” “will,” “believes,” “anticipates,” “intends,” “should,” “plans,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements contained herein involve numerous risks and uncertainties, and there are a number of factors that could cause actual results or future events to differ materially, including, but not limited to, our ability to attract or maintain patients, clients or providers or achieve our financial objectives, changes in national healthcare policy, federal or state regulation, and/or rates of reimbursement, including without limitation to the impact of the Patient Protection and Affordable Care Act, Health Care and Educational Affordability Reconciliation Act and medical loss ratio regulations, general economic conditions (including economic downturns and increases in unemployment), the Company's ability to successfully implement our growth strategy for the urgent and primary care business, the Company's ability to identify and acquire target centers, increased competition in the urgent care and primary care market, the Company's ability to recruit and retain qualified physicians and other healthcare professionals, lower than anticipated demand for services, pricing, market acceptance or preference, changes in the business relationship with significant clients, term expirations of contracts with significant clients, the Company's inability to maintain a network of ancillary service providers that is adequate to generate significant claims volume, increased competition in the ancillary network business, the Company's inability to manage growth, implementation and performance difficulties, and other risk factors detailed from time to time in the Company's periodic filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company undertakes no obligation to update or revise these forward-looking statements.

 

Investor Relations Contact:
Adam Winger, Vice President of Acquisitions
Interim CFO, General Counsel, and Secretary
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