VitalHub Corp. (TSX: VHI) (OTCQX: VHIBF) (“VitalHub” or the “Company”) is pleased to announce the completion of the previously announced acquisition of MedCurrent Corporation (“MedCurrent”).
Based in Toronto, MedCurrent is a physician-founded Clinical Decision Support company that is primarily focused on improving appropriateness of orders for medical imaging tests. MedCurrent’s flagship product, OrderWise, integrates evidence-based guidelines at the point of care, serving over 80 customers in Canada, the UK, the US, and Australia.
VitalHub’s acquisition of MedCurrent aligns with VitalHub’s strategic vision to integrate cutting-edge technology solutions that streamline healthcare delivery. MedCurrent’s OrderWise platform will complement VitalHub’s existing Patient Flow software suite, providing a comprehensive solution and strengthening VitalHub’s market positioning. An aligned geographic focus will naturally increase new business prospects across the growing Patient Flow product portfolio.
VitalHub acquired MedCurrent from its shareholders in an all-cash transaction for a purchase price of $12.0 million, or net up-front consideration of $8.3 million after working capital adjustments of $3.7 million. Total consideration also includes a future conditional earn-out of up to $21.9 million, subject to exchange rate adjustments, payable in cash and based on annual performance over 36 months. For the eight-month period ended August 31, 2024, MedCurrent had estimated revenue of $2.7 million. As at the acquisition closing date of October 7, 2024, MedCurrent had Annualized Recurring Revenue of approximately $2.3 million.
“We are pleased to welcome the MedCurrent team to the VitalHub family,” said Dan Matlow, CEO of VitalHub. “The combined talents of our teams will foster innovation, underscoring our commitment to staying ahead of an evolving market. We look forward to integrating MedCurrent’s technology and strengthening our market positioning and value proposition to customers.”
VitalHub’s legal advisors for the Transaction are Torkin Manes LLP. Toronto-based Morrison Park Advisors and Rotterdam-based IMAP Netherlands served as MedCurrent’s exclusive financial advisors, while Norton Rose Fulbright Canada LLP acted as legal advisor.
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