What You Should Know:
– VitalHub Corp. announced its acquisition of Novari Health Inc., a Canadian healthcare software provider specializing in patient flow solutions.
– The strategic acquisition, valued at an upfront consideration of $43.6M, significantly strengthens VitalHub’s position in the patient flow market, particularly in Canada, and sets the stage for accelerated global expansion.
Transaction Details and Financial Impact
The acquisition of Novari Health was completed for an upfront consideration of $43.6M. This payment at closing included $35.8M in cash (subject to working capital adjustments) and the issuance of 733,726 common shares of VitalHub. Additionally, a potential performance-based earnout of up to $5.0M in all-cash payments is structured over a two-year period following the closing. As of June 30, 2025, Novari had an Annual Recurring Revenue (ARR) of approximately $12M. Prior to the acquisition, Novari was approaching Adjusted EBITDA breakeven.
Novari Health Background
Based in Kingston, Ontario, Novari Health brings over 20 years of experience in improving patients’ access to care. Their cloud-based platform offers a series of integrated software modules designed to manage various aspects of patient flow, including:
- Referral management
- Surgical wait list management
- Central intake
- Care coordination
Health systems, hospitals, and regional health authorities leverage Novari’s technologies to drive down wait times and ensure that the right patients receive treatment from the right provider at the right time.
Strategic Opportunity for Global Leadership
The acquisition of Novari presents a significant strategic opportunity for VitalHub. The referral management market is a key area of international investment for governments due to increasing wait times and administrative burdens. In combination with VitalHub’s existing Strata referral management platform, the acquisition is expected to solidify VitalHub’s leading position in the Canadian market.
Furthermore, VitalHub plans to leverage its international footprint to rapidly expand Novari’s global penetration, with a particular focus on the UK. A joint go-to-market strategy and a unified suite of solutions are expected to enhance value for customers and establish VitalHub as a leader in the broader referral management market.
“We have watched the success of Novari in the Canadian landscape for over a decade, and are honoured to welcome the team to the VitalHub platform. We have solidified our leading position in the Canadian patient flow market, which we believe will be a long-term area of growth in the country’s digitalization journey,” said Dan Matlow, CEO of VitalHub.
