What You Should Know:
– CloudMD announces it will acquire digital patient engagement platform iMD Health Global for $10M
– The integration of iMD’s educational platform will enable CloudMD to provide its entire network of over 3000 healthcare practitioners, specialists, and allied health professionals and almost 3 million patients with valuable educational resources on healthcare issues, treatments, and preventative solutions.
CloudMD Software & Services Inc., a Vancouver, BC-based telehealth company revolutionizing the delivery of healthcare to patients, announced it will acquire iMD Health Global Corp. (“iMD”), a Toronto, ON-based digital patient engagement platform designed for healthcare professionals at every level of care to better engage, inform and educate patients about their conditions and treatment plans. The platform features trusted peer-reviewed healthcare resources.
Financial Details
Under terms of the agreement, CloudMD has agreed to pay shareholders aggregate consideration of C$10M payable as follows: (i) C$1.5M in cash, subject to a working capital adjustment; (ii) C$4.5M in shares of the Company; and (iii) performance-based earnouts of C$4M, which is payable in shares of the Company in annual issuances over a period of two years.
Improving Patient Engagement at Every Level of Care
iMD’s digital patient engagement platform is used by healthcare professionals (including doctors, nurses, pharmacists, and allied health professionals), to provide factual, medical information that promotes positive patient behavior in all health sectors. iMD’s intuitive platform provides a robust digital library and consultative visual component which is available on any digital device. iMD’s platform is populated with content licensing partnerships with Canada’s most respected health associations, pharmaceutical companies in addition to being backed and partnered with Apotex Pharmaceuticals, one of Canada’s largest pharmaceuticals companies with $2 billion in annual sales, which currently has an 18% equity stake in iMD.
The platform has access to over 7.5 million patients and is currently being used by over 10,000 healthcare professionals and other users including 3,800 doctors, 2,000 pharmacies, 140 hospitals, and 150 specialty clinics. In addition, iMD has partnerships with over 30 global pharmaceuticals companies, 18 digital healthcare integration providers, Health Canada, and over 60 healthcare associations in North America. iMD’s robust medical library already has over 80,000 patient-friendly images, brochures, and videos covering 2,100 health conditions, which includes the medical Mayo Clinic library. The platform has a great return on investment (ROI) for healthcare practitioners as it increases efficiency, improves patient engagement, reduces costs, and saves time.
iMD Integration with CloudMD’s EMR Platform
The acquisition of iMD is synergistic across every aspect of the Company’s business and both teams share the same vision of providing holistic, patient-centered healthcare. iMD’s educational platform will enable CloudMD to provide its entire network of over 3000 healthcare practitioners, specialists, and allied health professionals and almost 3 million patients with valuable educational resources on healthcare issues, treatments, and preventative solutions. Providing access to these additional resources is another way CloudMD demonstrates the importance of continuity of care and whole-person care as it continues to disrupt traditional healthcare delivery.
The integration of iMD’s platform into CloudMD’s EMR platform, Juno, creates an industry-leading EMR software, and one of the only solutions that give healthcare professionals direct access to additional resources to provide to their patients from one platform. The integration revolutionizes CloudMD’s EMR and will give it a significant competitive advantage over others in the market.
Acquisition to Generate $1.2M in Revenue Immediately
The acquisition will be immediately accretive to CloudMD as iMD has multiple high margin revenue streams from SaaS and sponsorship services. Based on contracts signed to date, iMD expects to generate annualized revenue of approximately $1.2 million with earnings before interest, taxes, depreciation and amortization (EBITDA) margins exceeding 5%. iMD has continued to grow its team and invest in its intellectual property, thus operating near breakeven to continue funding its aggressive growth strategy. CloudMD’s platform will provide opportunities for new revenue streams, cross-selling of services, and optimization of iMD’s current revenue model.
CloudMD’s Expansion Plans for iMD
CloudMD plans to expand iMD across Canada, North America, Mexico, and the Middle East. The iMD team will have access to CloudMD’s resources and capital to expedite its expansion and continue growing the business.
“The two companies instantly found common ground with our 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. These resources empower patients to finally participate in their own health and wellness which studies have repeatedly shown results in better outcomes, and in turn lowers healthcare costs for governments and corporations around the world. 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,” said Essam Hamza, CEO of CloudMD.
