DLH Acquires Danya International

DLH Holdings Corp. announced that it has acquired Danya International Inc., a provider of technology-enabled program management, public health expertise, consulting, and digital communications solutions primarily to the Department of Health and Human Services.  Danya generated adjusted 2015 EBITDA of $6.3 million.  The purchase price is $38.75 million comprised of $36.25 million in cash and approximately $2.5 million in restricted common stock.  

At first glance, this looks like a solid deal for DLH.  They were able to acquire a company with complimentary capabilities and customers in the Federal healthcare space for a reasonable adjusted EBITDA multiple of just over 6 times.  In fact, Danya’s 2015 adjusted EBITDA of $6.3 million is almost double DLH’s adjusted EBITDA of $3.2 million making this deal very accretive.  We’ve seen some rich deals in the healthcare space but this doesn’t appear to be one of them.