Neuronetics agreed to acquire all outstanding shares of Greenbrook TMS in an all-stock transaction. The acquisition creates a vertically integrated organization comprised of two companies that develop transcranial magnetic stimulation (TMS) technology.
Malvern, Pennsylvania–based Neuronetics develops products aimed at improving the lives of patients with neurohealth disorders. Its NeuroStar technology utilizes a coil-based design for the immediate treatment of depression symptoms through TMS. It requires no additional hardware upgrades or purchases. Greenbrook offers not only TMS therapy, but its Spravato nasal spray for depression.
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“This transaction brings together two of the leaders in the mental health space in the U.S., which will allow us to provide access to innovative care to patients suffering from mental health conditions. Leveraging the significant scale and capabilities of the two businesses, we can drive increased awareness of NeuroStar, consistently deliver best practices, facilitate improved reimbursement on a regional and national level, and provide additional services and training opportunities to all of our customers which can improve their business operations,” said Keith Sullivan, president and CEO of Neuronetics. “Beyond the strategic benefits, we believe this acquisition will help create a more attractive financial profile for the combined company, including the increased scale and growth trajectory of our top line, the ability to realize material cost synergies, the acceleration of our path to profitability, and a bolstered balance sheet. In combination, we expect this transaction will create significant long-term value for shareholders.”
Neuronetics says the acquisition increases brand awareness, enables more consistent best practices delivery and delivers more benefits to patients.
Marketing under a single brand could drive significant increases in awareness of NeuroStar, the company said in a news release. Under centralized management, the company feels it could better operationalize NeuroStar across all Greenbrook sites nationwide.
Additionally, Neuronetics says it expects financial benefits from the acquisition as well. The company said the pro forma revenue of the combined company would total approximately $145 million for fiscal 2023. That effectively doubles the scale of the standalone business. The combined company also expects mid-teens year-over-year revenue growth in 2025 and 2026.
After the companies combine, Neuronetics’ executive management team will continue with the resulting firm. The companies also plan for key Greenbrook leadership team members to join as well. That includes President and CEO Bill Leonard, CFO Peter Willett and Chief Medical Officer Dr. Geoffrey Grammer.
“This transaction combines two organizations who share a common mission to better care for the growing number of patients who are suffering from mental health conditions, many of whom are poorly served by medication alone,” said Leonard. “By combining Neuronetics’ innovative NeuroStar platform as well as their education and training expertise, with Greenbrook’s well established practice operations and support capabilities, we believe the combined company can improve care at Greenbrook’s existing sites and, just as importantly, at any practice across the country that is looking to bring the benefits of NeuroStar to their patients.”
