CloudMD Software and Services Inc. (DOCRF)

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Health technology provider CloudMD agrees to acquire HumanaCare for C$17.5M
Author Lovelyn Tagalag
Theme Healthcare & Pharmaceuticals
CloudMD Software & Services Inc. signed a binding term sheet to acquire HumanaCare Inc., a provider of mental and physical wellness services for employees and their families in Canada.

Under the deal, CloudMD will buy all of the outstanding securities of the target company and will pay HumanaCare shareholders a total of C$17.5 million, of which C$6.3 million will be in cash, C$6.825 million in CloudMD common shares and C$4.375 million as performance-based earnout. The common shares will be issued at a deemed price of C$2.88 apiece.

The acquisition will be immediately accretive to CloudMD, according to the company's Oct. 28 news release.

The acquisition is subject to customary closing conditions, including having a definitive acquisition agreement and approval from the TSX Venture Exchange.

The transaction follows a series of acquisitions that CloudMD has made recently. The company, which provides healthcare software technologies for healthcare providers across North America, signed two separate binding term sheets last week to acquire Medical Confidence Inc. and Canadian Medical Director for C$6 million and C$2 million, respectively.

Earlier in October, the company reported the completion of its acquisition of online mental health services provider Snapclarity Inc. for C$3.4 million.