- CloudMD Software & Services (DOC) has closed its acquisition of HumanaCare Organisational Resources, a provider of employee assistance services
- Under the terms of the agreement, CloudMD paid a total of C$17.5 million to wholly purchase First Health Care Services of Canada, the parent company of HumanaCare
- This amount is comprised of $6.3 million in cash, $6.825 million in common shares and $4.375 million in performance-based payments
- HumanaCare’s current annualised revenue run rate is roughly $3.3 million with EBITDA margins in excess of 19 per cent
- CloudMD Software & Services is currently up 2.26 per cent to $2.26 per share
CloudMD Software & Services (DOC) has closed its acquisition of HumanaCare Organisational Resources, a provider of employee assistance services.
Under the terms of the agreement, CloudMD wholly acquired First Health Care Services of Canada – the parent organisation of HumanaCare – for a total of C$17.5 million.
This amount consists of $6.3 million in cash, $6.825 million in common shares at a deemed price of $2.88 per share, and $4.375 million in performance-based payments, which will be paid in shares in two equal tranches over a two-year period.
As an employee assistance service, HumanaCare offers holistic, physical and mental health support for workers and their families. It’s funded by employers, and already caters to a variety of corporations and advisors, including Fortune 500 clients.
With more than 35 years of history in the Canadian healthcare sector, HumanaCare provides a number of key programs, including YourNurse, Chronic Disease Management, Eldercare, Medical Second Opinion and Disability Support Services.
The company also boasts an annualised revenue run rate of roughly $3.3 million, with EBITDA margins in excess of 19 per cent.
The acquisition is expected to be immediately accretive to CloudMD’s business, with synergies that are anticipated to drive additional revenue and further increase margins through various cost savings.
“CloudMD will be able to optimise and cross-sell into HumanaCare’s current client network by offering corporations and employers a more comprehensive solution which includes telemedicine, triaging, on-demand mental health support, and educational healthcare resources,” CloudMD said in a statement.
“…The combined offerings will provide one, centralised platform that breaks down the barriers to access by offering a team-based, longitudinal approach to employee wellbeing,” the company added.
CloudMD Software & Services is currently up 2.26 per cent to $2.26 per share at 12:45pm EST.
