CareCloud Acquires RevNu Medical Management, Completing Second Acquisition in 31 Days
Rhea-AI Summary
CareCloud (NASDAQ: CCLD) has announced the acquisition of RevNu Medical Management, an audiology-focused revenue cycle management company based in Westminster, California. This marks CareCloud's second acquisition in 31 days, following the MesaBilling deal.
RevNu's founder Clay Gililland, who owns over 30 hearing health clinics in Southern California, will integrate with CareCloud to leverage their technology and automation capabilities. Daniel Davis, former RevNu CEO, will lead CareCloud's new hearing healthcare division as President.
The acquisition targets the U.S. audiology market, which includes approximately 24,000 employed audiologists and hearing aid specialists, with annual hearing aid spending exceeding $5 billion. The segment remains minimally penetrated by outsourced RCM vendors. The acquisition is expected to be accretive within 90 days, with consideration paid quarterly based on retained revenue.
Positive
- Expansion into underserved audiology market worth $5B+ annually
- Expected to be accretive within 90 days
- Strategic acquisition of a leading RCM provider in hearing healthcare
- Integration of RevNu's expertise with CareCloud's AI-powered technology
- Access to established network of 30+ hearing health clinics
Negative
- RevNu described as 'relatively small' in current market position
- Payment structure tied to quarterly retained revenue performance
- Integration costs and challenges in new specialty market
Insights
CareCloud's acquisition of RevNu Medical Management represents a strategic expansion into the specialized audiology market. This move is particularly compelling as it's CareCloud's second acquisition in just 31 days, demonstrating aggressive execution of their growth strategy.
The deal structure is financially prudent, with consideration paid quarterly based on retained revenue, effectively tying acquisition costs to actual performance. The expected accretion within 90 days suggests minimal integration challenges and near-term financial benefits.
The U.S. audiology market represents a substantial opportunity with 24,000 employed professionals and annual hearing aid spending exceeding
By retaining RevNu's leadership expertise—particularly Daniel Davis as President of the new hearing healthcare division—CareCloud ensures continuity of specialized knowledge and client relationships. The founder's dual position as both RevNu's creator and owner of 30+ hearing health clinics provides valuable industry connections and credibility.
This acquisition aligns perfectly with CareCloud's apparent strategy of targeting underserved healthcare niches where they can leverage their AI-powered technology to gain market leadership, rather than competing in more saturated segments.
SOMERSET, N.J., April 02, 2025 (GLOBE NEWSWIRE) -- CareCloud, Inc. (the “Company”) (Nasdaq: CCLD, CCLDO), a leading provider of practice management, healthcare technology and AI-driven solutions to medical practices across the country, today announced the acquisition of RevNu Medical Management (“RevNu”), an emerging audiology-focused revenue cycle management (“RCM”) company based in Westminster, California.
“We’ve spent years building trusted relationships within the audiology community, and we couldn’t be more excited to join forces with CareCloud,” said Clay Gililland, founder of RevNu. “That experience has given us a deep understanding of the industry’s needs—insights we’re excited to put into action as RevNu joins CareCloud. As both the founder of RevNu and the owner of more than 30 hearing health clinics across Southern California, I’m confident that our clients and the broader industry will benefit greatly from CareCloud’s technology, automation, and scale.”
“The closing of RevNu marks a significant milestone in our acquisition strategy and a strategic expansion into a specialty care market lacking a clear leader,” said Stephen Snyder, Co-CEO of CareCloud. “RevNu’s deep expertise in audiology and strong, trusted client relationships make it an exceptional addition as we accelerate growth in underserved markets. By deploying our AI-powered revenue cycle management and advanced technology infrastructure in the hearing healthcare space, we are well positioned to expand our footprint, capture new market share, and accelerate CareCloud’s overall growth.”
The U.S. audiology market is believed to include approximately 24,000 employed audiologists and hearing aid specialists, with annual spending on hearing aids exceeding
“Through this combination, our clients will gain access to CareCloud’s powerful suite of tools, advanced infrastructure, and culture of innovation—all of which will improve outcomes and unlock new growth potential,” said Daniel Davis, former CEO of RevNu, who will lead CareCloud’s growth as President of its new hearing healthcare division. “I’m excited to spearhead the expansion of CareCloud’s audiology and hearing aid billing division and build on the foundation RevNu has created to capture new market share and drive growth.”
The RevNu acquisition, like the MesaBilling acquisition closed a month ago, is expected to be accretive within ninety days. Consideration will be paid quarterly, based on retained revenue.
About CareCloud
CareCloud brings disciplined innovation and generative AI to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health at www.carecloud.com.
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SOURCE CareCloud
Company Contact:
Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
nroth@carecloud.com
Investor Contact:
Stephen Snyder
Co-Chief Executive Officer
CareCloud, Inc.
ir@carecloud.com
FAQ
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