Greenbrook TMS Inc. (NASDAQ: GBNH), one of the largest providers of transcranial magnetic stimulation (TMS) therapy in North America, has announced a significant acquisition that underscores its rapid national growth. The company is set to acquire Success TMS in a stock transaction valued at approximately $27.3 million. As part of the deal, Success TMS owners will receive 11.9 million shares of Greenbrook stock. This acquisition represents a pivotal moment in Greenbrook’s trajectory, reinforcing its commitment to providing accessible, non-invasive mental health care while accelerating its broader TMS therapy expansion strategy.
A Major Boost to Greenbrook’s National Footprint
The acquisition adds 45 active TMS centers to Greenbrook’s network, bringing its total number of operational clinics to 191. With this move, Greenbrook will expand into five new states—Illinois, New Jersey, Nevada, Pennsylvania, and Wisconsin—marking a substantial geographic footprint increase. This TMS therapy expansion gives Greenbrook a stronger presence in both the Eastern and Midwestern regions of the United States, regions with growing demand for alternative depression treatments.
Bill Leonard, President and CEO of Greenbrook, emphasized the strategic importance of the deal. “This acquisition should allow us to continue to expand our national footprint of TMS centers throughout the United States,” Leonard stated. “This transaction is expected to accelerate Greenbrook’s ability to grow, particularly in the Eastern and Mid-Western regions, through well-established physician networks and key payor relationships.” As Greenbrook continues its TMS therapy expansion, it positions itself to meet the growing need for alternative treatments for individuals struggling with treatment-resistant depression.
Financial Upside and Projected Revenue Gains
The financial implications of the acquisition are equally notable. Greenbrook’s CFO Erns Loubser highlighted the anticipated revenue impact during the company’s Q1 earnings call. “We expect the acquisition of Success TMS will provide significant scale to the business, with an anticipated immediate post-closing annualized contribution of over $30 million in revenue, representing over 50% growth as compared to Greenbrook’s 2021 annual revenue,” Loubser said. He added that this TMS therapy expansion is expected to deliver tangible near-term synergies and accelerate the company’s path to profitability and cash flow self-sufficiency.
Greenbrook’s Q1 performance already showed strong momentum. The company reported $13.07 million in revenue for the quarter, beating its guidance by $1.2 million and reflecting a 15.49% increase compared to the same period the previous year. While earnings per share missed expectations by $0.06, the revenue uptick and anticipated benefits from the Success TMS acquisition demonstrate a clear strategy for growth. Loubser noted that the TMS therapy expansion will provide the scale needed to move closer to EBITDA-positive operations—a milestone that could solidify Greenbrook’s long-term financial sustainability.
Innovation and the Growth of the Spravato Program
Alongside the acquisition, Greenbrook is also investing in innovative treatment options. Leonard noted the company’s ongoing rollout of its Spravato Program, an FDA-approved, ketamine-based treatment for major depressive disorder. Currently available at 23 Greenbrook centers, the Spravato Program is expected to expand as part of the company’s wider TMS therapy expansion and diversification of mental health services.
This emphasis on innovation ensures that Greenbrook remains competitive as the mental health treatment landscape evolves. Spravato, which offers a novel approach for patients who haven’t found relief through traditional antidepressants, complements the company’s core TMS services and adds another layer of clinical value to its centers.
Building on a History of Strategic Growth
Founded in 2011 and publicly traded since 2019 on the Toronto Stock Exchange, Greenbrook has grown through both organic initiatives and a series of strategic acquisitions. The recent purchase of Achieve TMS East in September laid the groundwork for broader TMS therapy expansion, and the Success TMS deal builds directly on that momentum. With each acquisition, Greenbrook not only adds physical locations but also benefits from expanded physician networks, established regional relationships with insurers, and the ability to reach more patients in need of TMS therapy.
As Greenbrook integrates Success TMS into its operational framework, the company will focus on maintaining consistency in care, enhancing efficiency, and strengthening its brand as a trusted provider of non-invasive mental health treatments. This latest step in its TMS therapy expansion will require thoughtful alignment of clinical practices and backend systems, but the potential for national impact is considerable.
A National Response to the Mental Health Crisis
The U.S. mental health care system continues to evolve, with increasing demand for alternatives to traditional pharmacological treatments. TMS, which uses magnetic pulses to stimulate parts of the brain involved in mood regulation, has gained popularity as an effective, FDA-approved treatment for those who haven’t responded to antidepressants. Greenbrook’s ongoing TMS therapy expansion ensures that more patients across the country will have access to this promising therapy.
By reinforcing its presence in both existing and new markets, building on innovative therapies like Spravato, and maintaining a clear financial strategy, Greenbrook is positioning itself for long-term relevance and impact. The acquisition of Success TMS isn’t just another transaction—it’s a significant milestone in the company’s vision to become a national leader in outpatient mental health treatment through strategic TMS therapy expansion.
Looking Ahead: Integration, Access, and Long-Term Growth
As the mental health crisis continues to demand scalable, accessible solutions, Greenbrook’s latest acquisition sets the stage for broader national coverage, stronger infrastructure, and improved patient outcomes. The company’s future looks increasingly promising as it continues to lead the charge in TMS therapy expansion and innovation.
Whether through the integration of Success TMS, the scaling of the Spravato Program, or its growing network of care providers, Greenbrook is establishing itself as a leader in mental health care. As access to non-invasive and advanced treatment options improves, more individuals will have the opportunity to receive the support they need—helping to create a healthier and more hopeful future.
