- WELL Health acquires CloudMD’s Cloud Practice entity which includes OSCAR1 based on 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 professionals across Canada and represent WELL’s entry into the alberta and Saskatchewan markets for its EMR and billing products.
- After the transaction, WELL expects the assets to operate profitably while contributing more than $9 million in leading income.
- WELL will pay approximately $5.75 million for all assets, subject to post-closing adjustments and withholdings, reflecting an accretive transaction.
VANCOUVER, BC, October 11, 2022 /PRNewswire/ – WELL Health Technologies Corp. (TSX: WELL) (the “Company” Where “GOOD“), 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 that it has entered into a agreement to acquire Cloud Practice Inc. (“cloud practice“) and three clinics (the “Transaction“) of CloudMD Software & Services Inc. (“Cloud MD“).
Hamed ChahbaziCEO and Founder of WELL, said, “This transaction demonstrates our commitment to expanding and strengthening WELL’s Canadian healthcare offering through disciplined capital allocation. This acquisition will also allow 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 such as Juno EMR, a cloud-based EMR solution based on OSCAR1, and ClinicAid, medical billing software used by healthcare professionals who do not need access to a full EMR. Apart from WELL which is the biggest supplier of OSCAR1 EMR Products and Services, Juno EMR Represented Largest Remaining Asset and Largest Available Market Share in OSCAR1 EMR-based industry. Both Juno EMR and ClinicAid represent WELL’s entry into the alberta and Saskatchewan markets for its EMR and Medical Billing lines of business. Both assets will be integrated into WELL’s Provider Solutions business unit, under WELL’s existing EMR and billing platforms.
Amir JavidanCOO 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 gain access to WELL’s innovative Apps.Health platform, which includes dozens of applications designed by the 3rd party digital health companies providing advanced tools for physicians, such as an AI-powered virtual assistant, high-end digital patient engagement tools that can drive significant operational efficiencies for physicians clinics.
The three primary care clinics acquired in the transaction currently have a total staff of 20 doctors operating in two clinics in Vancouver, BC and a clinic 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 network of primary care clinics under WELL Health Canada Clinics Inc.
The consideration to be paid by WELL in connection with the Transaction is $5,750,000with $5,100,000 payable in cash at closing, and the balance subject to customary post-closing adjustments and withholdings. The transaction is expected to close in the fourth quarter of 2022 and is subject to standard closing conditions.
INFOR Financial Inc. acted as exclusive financial advisor and Cassels-Brock & Blackwell LLP acted as legal counsel to CloudMD.
1. OSCAR, an acronym for “Open Source Clinical Application Resource”, is an open source EMR system developed by the Department of Family Medicine at McMaster University to inspire collaboration among the wide range of healthcare professionals with the aim of Generate downstream benefits for patient care.
WELL HEALTH TECHNOLOGIES CORP.
By: “Hamed Shahbazi”
Managing Director, Chairman and Administrator
About WELL Health Technologies Corp.
WELL is a practitioner-driven digital healthcare company whose overarching goal is to positively impact health outcomes to empower and support healthcare practitioners and their patients. WELL has built an innovative practitioner enablement platform that includes comprehensive end-to-end practice management tools, including virtual care and digital patient engagement capabilities, and medical records services (EMR), Revenue Cycle Management (RCM) and Data Protection. WELL uses this platform to power healthcare practitioners inside and outside of WELL’s own omnichannel patient service offerings. As such, WELL owns and operates from Canada largest network of outpatient medical clinics serving primary and specialty healthcare services and is the provider of a leading multinational and multidisciplinary telehealth offering. WELL is listed on the Toronto Stock Exchange under the symbol “GOOD” and on OTCQX under the symbol “WHTCF“. To learn more about the company, please visit: www.well.company.
This press release may contain “forward-looking information” within the meaning of applicable Canadian securities laws, including, without limitation, the completion of the transaction, the expected revenue associated with the assets and future growth of the clinic. Forward-looking information is based on a number of estimates and assumptions which, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking information can generally be identified by the use of forward-looking terms such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”. ”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by such forward-looking information. and, which are not guarantees of future performance. The statements of WELL expressed or implied by forward-looking information are subject to a number of risks, uncertainties and conditions, many of which are beyond WELL’s control, and undue reliance should not be placed on such statements. Forward-looking information is qualified in its entirety by inherent risks and uncertainties, including: the direct and indirect material adverse effects of the COVID-19 pandemic; adverse market conditions; the risks inherent in the primary health care sector in general; regulatory and legislative changes; that future results may differ from historical results; the inability to obtain any required future financing on suitable terms; any inability to realize expected benefits and synergies from acquisitions; that market competition may affect WELL’s business, results and financial condition and other risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form. Except as required by securities law, WELL undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
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SOURCE WELL Health Technologies Corp.