Extendicare to Acquire Closing the Gap Healthcare Group

Extendicare ( (TSE:EXE) ) just unveiled an update.

Extendicare Inc. announced that its subsidiary, ParaMed Inc., will acquire Closing the Gap Healthcare Group, a provider of integrated home and community-based healthcare services in Ontario and Nova Scotia. The acquisition, valued at approximately $75.5 million, is expected to close in the third quarter of 2025 and will be funded from cash on hand and existing credit facilities. This strategic move is anticipated to enhance Extendicare’s home health care operations, adding significant service volumes and revenue, while also generating cost synergies through the integration of back-office functions.

Spark’s Take on TSE:EXE Stock

According to Spark, TipRanks’ AI Analyst, TSE:EXE is a Outperform.

Extendicare exhibits strong financial growth and profit margins, supported by effective cash flow management. The earnings call provides a positive outlook with strategic expansions and dividend increases. While technical indicators are currently favorable, potential overbought conditions warrant caution. The stock is fairly valued and offers a decent dividend yield.

To see Spark’s full report on TSE:EXE stock, click here.

More about Extendicare

Extendicare is a leading provider of care and services for seniors across Canada, operating under various brands including Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Network. The company is committed to delivering quality care to meet the needs of a growing seniors’ population, operating a network of long-term care homes and providing home health care services and group purchasing services across the country.

YTD Price Performance: 31.18%

Average Trading Volume: 215,515

Technical Sentiment Signal: Sell

Current Market Cap: C$1.15B

See more data about EXE stock on TipRanks’ Stock Analysis page.