- WELL Health is acquiring CloudMD’s Cloud Practice entity which includes OSCAR1 based Juno EMR or “Electronic Medical Record” and ClinicAid billing Software applications as well as three primary care clinics located in the province of British Columbia.
- The combined entities serve more than 2,500 healthcare practitioners across Canada and represent WELL’s entrance in the Alberta and Saskatchewan markets for its EMR and billing products.
- Post transaction WELL expects the assets to operate profitably while contributing more than $9M in topline revenues.
- WELL will pay approximately $5.75 million for all assets, subject to post-closing adjustments and holdbacks, reflecting an accretive transaction.
WELL Health Technologies Corp. (TSX: WELL) (the “Company” or “WELL“), a digital health company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce it has entered into an agreement to acquire Cloud Practice Inc. (“Cloud Practice“) and three clinics (the “Transaction“) from CloudMD Software & Services Inc. (“CloudMD“).
Hamed Shahbazi, CEO and Founder of WELL, said, “This transaction demonstrates our dedication to expanding and strengthening WELL’s Canadian healthcare offering through disciplined capital allocation. This acquisition will also enable our EMR and billing divisions to enter new markets in the Canadian Prairies where we look forward to supporting healthcare practitioners’ access to new digital health innovations.”
Cloud Practice is a medical software application company with products including Juno EMR, a cloud based EMR solution based on OSCAR1, and ClinicAid, a medical billing software used by healthcare practitioners who don’t need access to a full EMR. Outside of WELL who is the largest provider of OSCAR1 EMR products and services, Juno EMR represented the largest remaining asset and market share available in the OSCAR1 based EMR industry. Both Juno EMR and ClinicAid represent WELL’s entrance into the Alberta and Saskatchewan markets for its EMR and medical billing related lines of business. Both assets will be integrated into WELL’s Provider Solutions Business Unit, under WELL’s existing EMR and Billing platforms.
Amir Javidan, COO of WELL commented, “This transaction is a win for healthcare practitioners and their patients as it will allow software users and clinicians joining our network to have access to WELL’s innovative Apps.Health platform which includes dozens of apps designed by leading 3rd party digital health companies providing advanced physician tools such as an AI-powered virtual assistant to premium digital patient engagement tools that can drive significant operating efficiencies for clinics.”
The three primary care clinics being acquired in the Transaction currently have a total staff of 20 physicians operating out of two clinics in Vancouver, BC and one clinic in Surrey, BC. These clinics are owned by subsidiaries of CloudMD, with all of the shares of these entities being acquired as part of the Transaction. These three clinics will be integrated into WELL’s existing primary care clinic network under WELL Health Canada Clinics Inc.Transaction Details:
The consideration to be paid by WELL in connection with the Transaction is $5,750,000, with $5,100,000 to be paid in cash at closing, and the balance subject to customary post closing adjustments and holdbacks. Closing of the Transaction is expected in Q4 2022 and is subject to standard closing conditions.
INFOR Financial Inc. acted as exclusive financial advisor and Cassels Brock & Blackwell LLP acted as legal advisor to CloudMD.Notes:
|1. OSCAR, an acronym for “Open Source Clinical Application Resource”, is an open-source EMR system developed by McMaster University’s Department of Family Medicine to inspire collaboration between the wide spectrum of health professionals with the goal to drive downstream benefits to patient care.|
WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Chief Executive Officer, Chairman and Director
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