CloudMD Software & Services Inc., - CEO, Dr Essam Hamza.
CEO, Dr Essam Hamza.
Source: The Vancouver Sun.
  • Telehealth provider CloudMD (DOC) is set to acquire digital healthcare platform iMD Health Global in a cash-share deal valued at C$10 million
  • The deal will incorporate a payment of $1.5 million in cash and an issuance of $4.5 million in CloudMD shares to iMD Health, followed by a further $4 million in shares relating to performance-based earnouts
  • The iMD platform currently has access to more than 7.5 million through 10,000 medical professionals, which CloudMD hopes to integrate with its electronic medical records software
  • Looking further forward, Kevin Delano, CEO and Founder of iMD, said he hopes to expand iMD across Canada, North America, Mexico and the Middle East
  • CloudMD (DOC) is up 9.82 per cent and is trading at $1.79 per share

Telehealth provider CloudMD (DOC) is set to acquire digital healthcare platform iMD Health Global in a cash-share deal valued at C$10 million.

The deal will incorporate a payment of $1.5 million in cash and an issuance of $4.5 million in CloudMD shares to iMD Health, followed by a further $4 million in shares relating to performance-based earnouts over the first two years.

The iMD platform currently has access to more than 7.5 million through 10,000 medical professionals and, as a result, expects to generate annualized revenue of approximately $1.2 million over the coming year.

Once finalised, CloudMD hopes to integrate the iMD platform with its electronic medical records software to compound its industry footprint.

Looking further forward, Kevin Delano, CEO and Founder of iMD, has said he hopes to expand iMD across Canada, North America, Mexico and the Middle East.

Essam Hamza, CEO of CloudMD said the two companies instantly found common ground with a shared vision of providing a holistic, patient focused approach to healthcare.

“Combining both platforms is immediately synergistic across every aspect of both our businesses as it allows us to layer on additional educational resources for our doctors, allied health professionals and patients and for us to cross sell services to their clients and patients.

“The addition of iMD further realizes our strategy of whole person healthcare delivery and will be an extremely valuable piece of our global growth plans,” he said.

CloudMD has staged an impressive share price hike over the last few months, leaping up more than 200 per cent since the end of July. The strong market performance was led by ongoing investor interest in the telehealth industry in the wake of COVID-19, as well as a string of acquisitions and expansions by CloudMD over the last few months.

CloudMD (DOC) is up 9.82 per cent and is trading at $1.79 per share at 1:43pm EDT.

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