In a bold move that is set to redefine the landscape of transcranial magnetic stimulation (TMS) therapy, Neuronetics acquisition of Greenbrook TMS marks a significant milestone in the company’s growth. As a leading provider of TMS technology, Neuronetics is strategically positioning itself to expand its market share, streamline operations, and solidify its leadership in the rapidly growing field of non-invasive mental health treatments. This acquisition is particularly noteworthy, as it comes at a time when Greenbrook, based in Toronto, was facing significant financial challenges, including being delisted from the Nasdaq Stock Market earlier this year.
A Closer Look at the Deal: Neuronetics Acquisition of Greenbrook
Neuronetics, headquartered in Malvern, Pennsylvania, has acquired all of Greenbrook’s outstanding common shares in an all-stock transaction. The Neuronetics acquisition comes just months after Greenbrook was delisted from the Nasdaq in February 2025. Greenbrook’s stock had been trading below $1, and its total market value had dropped under $35 million for 30 consecutive days. When it was officially removed from the Nasdaq, Greenbrook’s stock was valued at just 13 cents per share.
Once a pioneer in the TMS space, Greenbrook had grown rapidly, operating as many as 183 clinics at its peak, employing around 850 people. However, in 2023, Greenbrook began scaling back its operations due to financial challenges, with the company now operating 101 facilities across 18 states. Despite these setbacks, Greenbrook remains a key player in the TMS industry, and the Neuronetics acquisition provides an opportunity for renewed growth and operational stability.
Strategic Rationale and Long-Term Benefits of the Neuronetics Acquisition
The Neuronetics acquisition of Greenbrook TMS offers numerous strategic benefits that will help the combined company thrive in the competitive TMS market. Keith Sullivan, President and CEO of Neuronetics, emphasized the strategic advantages of the deal, saying, “Beyond the strategic benefits, we believe this acquisition will help create a more attractive financial profile for the combined company, including the increased scale and growth trajectory of our top line, the ability to realize material cost synergies, the acceleration of our path to profitability, and a bolstered balance sheet.”
This acquisition not only expands Neuronetics’ footprint but also improves its operational efficiency. By combining resources and infrastructure, Neuronetics can achieve substantial cost savings and optimize its services. The Neuronetics acquisition of Greenbrook strengthens its position in the marketplace and offers greater opportunities for growth.
Financial Impact: Doubling the Scale of the Business
The Neuronetics acquisition will significantly boost the financial outlook for the combined company. In the 2023 fiscal year, the pro forma revenue of the merged entity is expected to reach $145 million, which effectively doubles the scale of the stand-alone businesses. This increased revenue scale will allow Neuronetics to expand its TMS treatment offerings and solidify its leadership in the market.
Additionally, the Neuronetics acquisition is expected to result in at least $15 million in annualized cost savings due to improved operational efficiencies, centralized services, and a more standardized approach to best practices across clinics. Both Neuronetics and Greenbrook estimate that the combined company will experience year-over-year revenue growth in the mid-teens for 2025 and 2026, driven by the synergies and expanded market reach created by the merger.
Neuronetics also has ambitious financial goals, with expectations to be adjusted EBITDA positive and cash flow positive by the end of fiscal year 2025, excluding any one-time costs associated with the Neuronetics acquisition of Greenbrook.
Leadership Transition and Integration Plans
In terms of leadership, Neuronetics will maintain its existing executive management team, ensuring stability and continuity throughout the integration process. However, the Neuronetics acquisition brings three key executives from Greenbrook to its leadership team: Bill Leonard, President and CEO of Greenbrook; Peter Willett, CFO; and Dr. Geoffrey Grammer, Chief Medical Officer. Their inclusion will provide valuable experience and insight into the integration process and ensure that the best practices from both organizations are successfully implemented.
These leadership changes are crucial as the companies work to merge their operations seamlessly. The Neuronetics acquisition will enable the newly combined team to better navigate the challenges of integration while capitalizing on the opportunities for expansion and growth.
Expanding Reach and Enhancing Brand Awareness
Neuronetics’ flagship platform, NeuroStar TMS, is one of the most recognized and trusted names in the TMS industry. The Neuronetics acquisition of Greenbrook will allow the company to increase its market reach, adding new clinics to its network and enhancing its visibility across the United States. With over 1,100 practices already under its belt, Neuronetics will now have access to an even broader base of patients in need of TMS treatment.
This expanded footprint will improve brand awareness for NeuroStar TMS and help the company deliver high-quality care to an even larger number of patients. The acquisition also presents an opportunity to standardize operations across both companies, ensuring that patients receive consistent, effective treatments at every location.
The Road Ahead: Growth, Synergies, and Market Expansion
Looking to the future, the Neuronetics acquisition of Greenbrook TMS is expected to drive sustained growth. The expanded network, increased revenue potential, and operational efficiencies will help Neuronetics continue to lead in the TMS market. The combined company is poised to leverage these synergies to enhance its product offerings and deliver greater value to patients and shareholders alike.
The projected mid-teens revenue growth over the next few years, along with significant cost savings, will provide Neuronetics with the financial flexibility to continue its market expansion. The company’s goal of achieving profitability by the end of 2025 is a key milestone that will set the stage for long-term value creation.
For investors, the Neuronetics acquisition is a positive development, signaling the company’s ability to expand its market share and improve its financial performance. As the demand for TMS therapies continues to rise, Neuronetics is well-positioned to take advantage of this growth and further solidify its leadership in the industry.
Conclusion: A Bold Step Toward Industry Leadership
The Neuronetics acquisition of Greenbrook TMS is a significant and strategic move that will not only enhance the company’s financial strength but also solidify its leadership in the TMS market. The expanded network, streamlined operations, and improved brand awareness will help Neuronetics continue to thrive in a rapidly evolving sector.
As the company moves forward with the integration of Greenbrook, it is well-positioned for continued success, providing better care to more patients and creating significant value for its shareholders. The Neuronetics acquisition is just the beginning of an exciting new chapter in the TMS industry.
