The animal healthcare company VCA Antech Inc. has entered into an agreement to acquire MediMedia Animal Health LLC (Vetstreet) an online veterinary communications, education and marketing solutions company located in Yardley, Pa.
VCA Antech will acquire MediMedia’s Vetstreet for $146 million in cash. The acquisition is conditioned on the expiration or earlier termination of the Hart-Scott Rodino waiting period and other customary conditions. Closing is expected in September.
“We are excited about combining Vetstreet with our existing businesses,” said Bob Antin, chairman and CEO of VCA Antech. “This combination will provide both companies with outstanding growth opportunities. Vetstreet has a history of strong year-over-year revenue growth, including growth of approximately 72 percent from 2009 to 2010, as well as an estimated growth rate in excess of 50 percent from 2010 to 2011. Vetstreet's approach to providing services to veterinarians and pet owners, combined with our presence in the animal hospital and diagnostic laboratory businesses, will expand the breadth of our product offerings to the veterinary community.”
Continuing education with Vetlearn, pharmaceutical and nutritional reports through VetInsite Analytics, a consumer portal with Vetstreet and communications service with Vetstreet Pro, are products now under VCA Antech ownership.
“Vetstreet's annual revenues are expected to grow to $55 to $65 million in 2012,” Antin said. “The impact on earnings per share is expected to be slightly dilutive in the current year and accretive thereafter. I have known and worked with the Vetstreet management team for over 10 years and I’m excited that the entire team is expected to continue with Vetstreet following the closing.