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CloudMD (TSXV:DOC) buys Aspiria to expand virtual mental health services

Health Care
TSXV:DOC
18 January 2021 12:38 (EDT)
CloudMD Software & Services Inc., - CEO, Dr Essam Hamza.

Source: The Vancouver Sun.

CloudMD (DOC) has expanded its virtual mental health services by purchasing Aspiria.

Established in 2003, Aspiria is a healthcare provider focused on delivering employee and student assistance programs.

The Vancouver-based telehealth company signed a binding term sheetto acquire 100 per cent of the company.Aspiria currently serves over 750 organizations and one million people globally. Its current annualized revenue run rateis approximately $3.4 million.

Aspiria Founder and CEO Charles Benayon said becoming part of the CloudMD family means both companies can do more to motivate organizations on their journeys to better health.

“With access to CloudMD’s incredible resources, knowledge and global platform, the transformation of delivering mental health care to organizations in the employer and student markets will be truly limitless,” Benayon said.

Aspiria provides a technology-driven mental health support solution that gives access to clinical services for mental and situational life issues impacting wellbeing.

CloudMD will leverage Aspiria’s technology and digital care solutions combined with traditional in-person counselling to meet the unique needs of students and employees across North America.

Aspiria will become part of CloudMD’s enterprise health solutions division. It will also complement CloudMD’s other mental health solutions including Snapclarity and HumanaCare to promote effective and efficient clinical best practices in managing mild, moderate and chronic conditions.

The addition of Aspiria increases CloudMD’s clinical network to approximately 7,500 therapists and mental health professionals in North America.

For the purchase of 100 per cent of the outstanding securities of Aspiria, CloudMD agreed to pay shareholders an aggregate consideration of $3 million payable as follows: $1.2 million in cash, subject to a working capital adjustment; $1.05 million in common shares of the company; and a performance-based earnout of $0.75 million, which is payable in common shares of the company after a period of one year.

CloudMD is up 2.25 per cent to C$2.27 per share at 12:09pm EST.

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