- Telehealth provider, CloudMD Software & Services (TSXV:DOC) is set to acquire a 51 per cent interest in the Ontario-based West Mississauga Medical clinic
- The company will pay the shareholders of the centre a total of C$200,000, which is expected to be comprised of $140,000 in cash and $60,000 in common shares
- CloudMD’s acquisition of the clinic forms part of its national growth strategy, which includes having well-established brick and mortar partners
- The clinic hosts eight doctors and four specialists, servicing more than 100,000 patients, and generated over $1.8 million in revenue last year
- CloudMD Software & Services (DOC) is currently up 1.45 per cent and is trading at 70 cents per share
Telehealth provider, CloudMD Software & Services (TSXV:DOC) is set to acquire a 51 per cent interest in the Ontario-based West Mississauga Medical clinic.
Under the terms of the binding term sheet, the company is expected to pay a total of C$200,000 to the shareholders of the clinic for the acquisition. This is expected to be comprised of $140,000 in cash and $60,000 in common shares of CloudMD.
The West Mississauga Medical clinic currently hosts eight family doctors and four specialists, servicing 100,000 patients. During 2019, the centre generated $1.8 million in revenue with EBITDA margins exceeding 11 per cent.
CloudMD’s acquisition of the clinic forms part of the company’s broader national growth strategy, which includes securing interests in well-established brick and mortar partners.
Essam Hamza, CEO of CloudMD, said the deal represents a significant milestone as the company continues to expand across Canada.
“We want to bring access to healthcare to all Canadians while maintaining continuity of care.
“We are of the view that a platform of strategic, well-established clinics allows us to best leverage our capital for the purpose of on-boarding patients for the digital delivery of healthcare,” he said.
Located on the border of Brampton, Mississauga and Milton, the clinic has been in operation for the last 16 years. It remained open during the COVID-19 pandemic, attending to patients both via telemedicine and in person.
Following completion of the transaction, West Mississauga Medical will be integrated with CloudMD’s Electronic Medical Records platform while its doctors and specialists will begin servicing the company’s registered Ontarian users and patients.
Sohal Goyal, Medical Director of West Mississauga Medical, also commented on the deal, noting that the partnership would allow the centre to continue its tradition of providing comprehensive care to its patients.
“Partnering with CloudMD gives us the opportunity to expand our virtual office and enhance the provision of medical care to patients across Ontario.
“Integrated medical care with a virtual footprint is the future of medicine and we are excited to be part of the CloudMD family of medical clinics and the first in Ontario,” he said.
While the acquisition remains subject to approval from the TSX Venture Exchange, a definitive agreement is expected to be signed by the end of July, 2020.
CloudMD Software & Services (DOC) is up 1.45 per cent and is trading at 70 cents per share at 10:24am EDT.