Animal health leader to combine practice, prescription, and wellness management for better veterinarian-client relationships, practice revenue and healthcare outcomes.
PORTLAND, Maine & IRVINE, Calif.--(BUSINESS WIRE)--Jun. 30, 2021--
Covetrus® (NASDAQ: CVET), a global leader in animal-health technology and services, today announced that it has entered into a definitive agreement to acquire VCP, a market-leading platform in veterinary wellness plan administration, serving approximately 1,000 veterinary practices with more than 350,000 pets currently benefiting from wellness plans enabled by VCP. The acquisition is expected to close in the third quarter, subject to customary closing conditions.
VCP’s technology platform and infrastructure will afford Covetrus new ways to provide today’s veterinarians with tools to foster stronger relationships with their pet parent clients and deliver better business and healthcare outcomes. VCP’s solutions help veterinarians serve the growing number of pet parents seeking holistic, highly tailored wellness plans centered around their trusted veterinarian.
As a leading wellness solutions provider, VCP’s technology helps veterinarians deliver comprehensive wellness, treatment and lifestyle plans for their clients. Plans powered by VCP feature everything from preventative services, dental care and diagnostics to boarding and grooming. Integrating the VCP platform with Covetrus’ robust practice management and prescription management software will enable customized wellness plans to meet the unique needs of every family and support an enhanced veterinary practice and pet parent experience.
“Modern pet parents are serious about wellness, and that means delivering the right medicine, services and products at the right price and the right time,” says Ben Wolin, Covetrus president and chief executive officer. “Covetrus is strategically positioned to help veterinarians deliver proactive and holistic healthcare via membership programs with a seamless integration into our leading practice management and prescription management solutions. By adding VCP’s technology to our software portfolio, we’re making wellness truly accessible for both practices and pet parents, which is key to helping veterinarians strengthen their relationships with their clients, improve clinical quality and extend affordable care.”
Pet wellness has grown to an estimated $50 billion market in the United States and is currently experiencing rapid adoption. For veterinarians looking to stand out from the competition and drive better practice and patient health, tech-driven wellness plans deliver exceptional experiences that strengthen bonds with both clients and patients. Practices adopting the VCP platform reported up to 10% revenue growth in the first year, with ongoing year-over-year growth and significant increases in spending per pet over time.
“Covetrus is a natural fit as VCP prepares for the next stage of our journey,” said Bob Richardson, VCP co-founder and president, who will continue in his role. “Covetrus offers the opportunity to bring our comprehensive wellness solution to the forefront by integrating with their powerful practice management solutions. This integration will deliver new levels of ease and convenience for clinics and facilitate more care. In addition, it will drive pet care education and enable convenient home delivery for pet parents looking for easier accessibility, value and a better overall experience. We are beyond excited to better deliver the Business of Wellness and the resulting benefits to countless pets, pet parents and veterinary practitioners in the years ahead.”
Financial terms of the transaction were not disclosed. The transaction is not expected to have a material impact on Covetrus’ previously announced 2021 financial guidance.
White and Williams LLP is acting as legal advisor to Covetrus, and Lincoln International LLC is acting as financial advisor. Bryan Cave Leighton Paisner LLP is acting as legal advisor to VCP, and Houlihan Lokey is acting as its exclusive financial advisor.
Covetrus is a global animal-health technology and services company dedicated to empowering veterinary practice partners to drive improved health and financial outcomes. We are bringing together products, services, and technology into a single platform that connects our customers to the solutions and insights they need to work best. Our passion for the well-being of animals and those who care for them drives us to advance the world of veterinary medicine. Covetrus is headquartered in Portland, Maine with more than 5,500 employees serving over 100,000 customers around the globe. For more information about Covetrus visit https://covetrus.com/.
VCP has become the veterinary industry’s leading wellness plan management solution providing a comprehensive end-to-end platform that takes the uncertainty out of creating, launching and managing a wellness program. VCP’s innovative wellness technology, and proprietary Business of Wellness process, enables veterinary clinics to deliver plans designed to their treatment protocols and specific client needs. For practices, wellness programs deliver increased compliance and loyalty, and higher per pet spend, up to 10% revenue growth in the first year. VCP is headquartered in Irvine, California. For more information visit https://vcp.vet/.
This press release contains certain statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and that involve risks and uncertainties, including statements about our plans, objectives, expectations, and intentions. Such statements are subject to numerous risks and uncertainties. Factors that could adversely affect our business and prospects are set forth in our public filings with the Securities and Exchange Commission. Our forward-looking statements are based on current beliefs and expectations of our management team and, except as required by law, we undertake no obligations to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release, whether as a result of new information, future developments or otherwise. Investors are cautioned not to place undue reliance on these forward-looking statements.
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