TORONTO, Oct. 08, 2024 (GLOBE NEWSWIRE) -- VitalHub Corp. (TSX: VHI) (OTCQX: VHIBF) ("VitalHub" or the "Company") is pleased to announce the completion of the previously announced acquisition of MedCurrent Corporation ("MedCurrent").
Based in Toronto, MedCurrent is a physician-founded Clinical Decision Support company that is primarily focused on improving appropriateness of orders for medical imaging tests. MedCurrent's flagship product, OrderWise, integrates evidence-based guidelines at the point of care, serving over 80 customers in Canada, the UK, the US, and Australia.
VitalHub's acquisition of MedCurrent aligns with VitalHub's strategic vision to integrate cutting-edge technology solutions that streamline healthcare delivery. MedCurrent's OrderWise platform will complement VitalHub's existing Patient Flow software suite, providing a comprehensive solution and strengthening VitalHub's market positioning. An aligned geographic focus will naturally increase new business prospects across the growing Patient Flow product portfolio.
VitalHub acquired MedCurrent from its shareholders in an all-cash transaction for a purchase price of $12.0 million, or net up-front consideration of $8.3 million after working capital adjustments of $3.7 million. Total consideration also includes a future conditional earn-out of up to $21.9 million, subject to exchange rate adjustments, payable in cash and based on annual performance over 36 months. For the eight-month period ended August 31, 2024, MedCurrent had estimated revenue of $2.7 million. As at the acquisition closing date of October 7, 2024, MedCurrent had Annualized Recurring Revenue of approximately $2.3 million.
"We are pleased to welcome the MedCurrent team to the VitalHub family," said Dan Matlow, CEO of VitalHub. "The combined talents of our teams will foster innovation, underscoring our commitment to staying ahead of an evolving market. We look forward to integrating MedCurrent's technology and strengthening our market positioning and value proposition to customers."
VitalHub's legal advisors for the Transaction are Torkin Manes LLP. Toronto-based Morrison Park Advisors and Rotterdam-based IMAP Netherlands served as MedCurrent's exclusive financial advisors, while Norton Rose Fulbright Canada LLP acted as legal advisor.
ABOUT MEDCURRENT
Headquartered in Toronto, Canada, MedCurrent Corporation is focused on improving the quality of care and managing health system costs through its innovative Clinical Decision Support (CDS) platform, enabling real-time, evidence-based guidelines integrated at the point of care to improve health and healthcare delivery. MedCurrent serves 80+ organizations throughout Canada, the United Kingdom, the United States of America, and Australia with its 15 team members based in Canada and the United Kingdom.
ABOUT VITALHUB
Software for Health and Human Services providers designed to simplify the user experience and optimize outcomes.
VitalHub is a leading software company dedicated to empowering Health and Human Services providers. Our clients include hospitals, regional health authorities, mental health and addictions services providers for children and adults, long-term care facilities, home health agencies, correctional services, and community and social services providers.
VitalHub's comprehensive suite of SaaS solutions include:
- Electronic Health Record (EHR), Case Management, Care Coordination, and Optimization
- Patient Flow, Operational Visibility, and Patient Journey Optimization
- Workforce Automation & Compliance
The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently VitalHub serves more than 1,000 clients across Canada, USA, UK, Australia, the Middle East, and Europe.
VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The VitalHub team comprises more than 400 team members globally. The Company is publicly traded on the Toronto Stock Exchange (TSX) under the symbol "VHI" and on the OTC Markets OTCQX Exchange under the symbol "VHIBF".
https://www.vitalhub.com/
CONTACT INFORMATION
Christian Sgro, CPA, CA, CFA
Head of IR and M&A Specialist
(416) 277-3776
christian.sgro@vitalhub.com
Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com
CAUTIONARY STATEMENT
This press release includes forward-looking statements regarding the Corporation and its business, which may include, but is not limited to, statements with respect to the appointment of a new directors. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the companies, including risks regarding the technology industry, failure to obtain regulatory or shareholder approvals, market conditions, economic factors, the equity markets generally and risks associated with growth and competition. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
