CloudMD agrees HumanaCare takeover
CloudMD has announced the signing of a binding term sheet to purchase HumanaCare, which runs employee assistance programmes.
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Under the terms of the deal, the buyer will pay USD 17.50 million for the business.
Of this amount, USD 6.30 million will be in the form of cash, while USD 6.83 million will be in stock.
The balance will take the form of a USD 4.38 million earn-out component, which will be payable in shares, in two equal instalments over a period of two years.
Completion is subject to the signing of a definitive agreement, as well as approval from the TSX Venture Exchange.
CloudMD’s chief innovation officer, Karen Adams, said the purchase will result in the company becoming one of the only providers capable of addressing both the short- and long-term mental and physical healthcare needs of employees.
She added: “CloudMD will now be able to provide corporations and employers one, centralised platform incorporating telemedicine, mental health, physical health and education to manage their employees’ health and wellbeing, by increasing the level of care provided.
“The centralised platform will also significantly reduce costs associated with multiple vendors, as well as provide better patient care outcomes.”
Jamie Marcellus, President of HumanaCare, added: “The unique combination of CloudMD’s enterprise solutions addresses many of the gaps in the health care continuum allowing employers to offer a complete solution for their employees’ evolving healthcare needs.”
The target expects revenue and its earnings before interest, taxes, depreciation and amortisation margin to increase immediately as a consequence of the purchase.
HumanaCare offers access to mental and physical and wellness support services for corporate clients and their employees.
Funded by employers, its services make use of a network numbering in excess of 3,500 clinicians.
It uses nurse triage to support mental health and short-term incidental issues, such as counselling, financial stress, nutrition, legal and eldercare consultation, through programmes like YourNurse, Medical Second Opinion and Chronic Disease Management.
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