EXOS Acquires D1 Sports Medicine To Extend Physical Therapy Services – Forbes
Human performance leader EXOS will today announce its acquisition of D1 Sports Medicine, a company that partners with top sports medicine orthopedists to offer athletes physical therapy services and help them rehabilitate and return from injury. Physical therapy has always been an important component of the services provided by EXOS to athletes, and the acquisition will accelerate the company’s ability to scale its offerings beyond the most elite athletes in the NFL and other professional sports leagues.
EXOS will immediately incorporate more than 70 existing D1 Sports Medicine locations that are already partnered with health care systems to serve local communities across the U.S. The company envisions a serious increase in revenue opportunities will result as a consequence of the purchase, but it also comes with additional costs.
D1 Sports Medicine currently has nearly 200 employees, according to EXOS CEO Dan Burns, who did not feel comfortable sharing specific financial information. However, he did state that overall revenue for the population health area of his business, which is the sector that physical therapy will be integrated within, will be over $50 million.
“Physical therapy has always been an integral part of the services we provide to athletes,” explained Burns. “Physical therapy is adjacent to the main floor at our facilities. We were the first to pioneer the ‘prehabilitation’ platform. What we have not done in the past is extend beyond our elite athletes.”
That extension to the more general public could cause EXOS to be a major player in the realm of physical therapy, which may in turn yield major rewards for the company.
Outpatient rehabilitation is a $29.6 billion industry, with $26.6 billion of that amount coming from physical therapy. But the physical therapy sector is highly fragmented. The largest fifty competitors make up less than 25% of the market.
“Right now, physical therapy is only a small percentage of our direct revenue, but an integral part of the core services we are providing to athletes,” said Burns. “As we look forward, to really impact population health on a broader stance, we see physical therapy being a much more significant component of overall revenue.”
Burns would not comment on the price of the acquisition, but stated that his company paid a “reasonable price . . . the market price for a comparable physical therapy business.”
Darren Heitner the Founder of South Florida-based HEITNER LEGAL, P.L.L.C. and Sports Agent Blog. He authored the book, How to Play the Game: What Every Sports Attorney Needs to Know.