- CloudMD Software & Services (DOC) has signed a definitive agreement to acquire South Surrey Medical in Vancouver, British Columbia
- As consideration for the deal, CloudMD will a total of up to C$700,000, which is expected to consist of both cash and common shares
- The clinic operates with 24 healthcare professionals, including 12 physicians across various specialities
- South Surrey Medical services more than 60,000 patients and already uses online booking, EMR software and telemedicine
- CloudMD Software & Services (DOC) up 3.7 per cent and is trading at 56 cents per share
Telemedicine provider, CloudMD Software & Services (DOC) has signed a definitive agreement to acquire Vancouver-based South Surrey Medical.
Under the terms of the deal, for which a binding term sheet was signed on June 11, 2020, CloudMD will wholly acquire the clinic, its assets and operations for a total of up to C$700,000.
This amount is expected to be comprised of up to $200,000 in cash and up to $500,000 in common shares.
A portion of the purchase price will be subject to the satisfaction of certain performance milestones, as well as a customary working capital adjustment.
For the year ending December 31, 2019, South Surrey Medical generated $3 million in revenue. It operates with 24 healthcare professionals, including 12 physicians across various specialities such as mental health, women’s health, sports medicine, gynecology and psychiatry.
The clinic services more than 60,000 patients, and is an established user of online booking, EMR software and telemedicine, which will be integrated into CloudMD’s existing EMR software and clinic network.
According to the June announcement, Dr Essam Hamza, CEO of CloudMD Software & Solutions, said the acquisition would increase the company’s top line revenue and form a key part in its broader growth strategy across Canada and the United States.
“COVID-19 and the cash injection from the most recent financing were transformational for us and accelerated our growth plans by three to five years.
“The funds raised gives us a war chest of capital to deploy on strategic, accretive acquisitions already in our due diligence pipeline,” he added.
CloudMD Software & Services (DOC) is currently up 3.7 per cent and is trading at 56 cents per share at 11:45am EDT.