Lafayette Hill-based Merakey and Media’s Elwyn, both providers of services for individuals with intellectual/developmental disabilities and behavioral health challenges, announced on March 27th that they have signed a non-binding Memorandum of Understanding to consider affiliating to create improved service delivery and expanded programs for the individuals they serve. Combined, the two companies employ more than 12,000 people and provide services to 55,000 individuals in 16 states.
In the announcement, the two organization state that they will “explore an affiliation that would focus on the delivery of ‘whole person’ care, providing a coordinated array of services for children and adults including medical care, behavioral health, intellectual disabilities, and education services.” The organizations believe that by combining their resources will “provide expanded opportunities to invest in new programs, employee development, and technological innovation that is necessary to excel in a rapidly-evolving industry.”
While not mentioned in the announcement, The Philadelphia Inquirer reports that the merger would create a $1 billion organization.
“We believe that this combination could dramatically improve the delivery of programs and services for our individuals and improve their quality of life, and we are tremendously excited about its potential,” said Joseph S. Martz, CEO of Merakey. “An affiliation would maximize the resources to allow for significant new investment in programs and permit technology improvements that would be game-changing in terms of delivering a coordinated array of services.”
“We are greatly encouraged by the prospect of exploring an affiliation with Merakey,” said Charles S. McLister, president and CEO of Elwyn. “Together, our combined companies could set a new standard of excellence in service delivery, and we look forward to the next phase of this process, which is to complete our due diligence to validate the concept.”
The companies indicated that they expect to complete their due diligence over the next several months, and if they agree to continue to pursue a combination, a more definitive affiliation agreement could be signed by mid-summer. At such point, the consummation of the arrangement would be subject to customary regulatory approvals, which the parties anticipate could take several months to obtain.
It was not mentioned in the announcement whether the Lafayette Hill office of Merakey would be impacted by any merger.