The total transaction value is dependent on annual performance over 36 months.
Toronto-based healthtech firm VitalHub has entered an agreement to acquire fellow Toronto firm MedCurrent Corporation and its subsidiaries for up to approximately $34 million.
The transaction is expected to close at the beginning of September.
MedCurrent provides a clinical decision support (CDS) software product called OrderWise, which claims to assist in determining the appropriateness of a medical test based on guidelines and artificial intelligence (AI) at the point of care. Clinicians tell OrderWise what ailment they suspect, answer questions that gauge the appropriateness of a potential test, and can browse alternate options before ordering said test.
In a statement, VitalHub said that the acquisition aligns with its strategic vision of integrating technology solutions that streamline healthcare delivery, adding that the OrderWise platform will complement its existing software suite.
“MedCurrent’s unique CDS software addresses a clear and critical need in the healthcare system,” VitalHub CEO Dan Matlow said in a statement. “By integrating MedCurrent’s solutions with our existing offerings, we believe that we can significantly reduce unnecessary tests and procedures, ultimately lowering costs and improving patient care.”
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The transaction consists of a $12-million cash payment upon close of the transaction, with additional post-close earnouts that are worth up to approximately $21.875 million, according to VitalHub. The additional earnouts are contingent on annual performance over 36 months and, if earned, will bring the total transaction value up to approximately $34 million.
The transaction, which is still subject to the approval of 66.66 percent of VitalHub shareholders, will make MedCurrent a wholly owned subsidiary of VitalHub. The transaction is expected to close at the beginning of September.
Founded in 2015, VitalHub offers software for health and human service providers, including hospitals, regional health authorities, long-term care facilities, and community and social services providers. The TSX-listed company is an active acquirer, having acquired English company BookWise Solutions earlier this year. Among its numerous acquisitions are Kitchener-Waterloo, Ont. based healthtech startup Oculys Health Informatics in 2019 and the United Kingdom (UK)’s Alamac in 2021.
VitalHub said that the OrderWise platform has been primarily focused on assisting in the appropriate use of medical imaging tests, and that MedCurrent provides its solutions in over 80 customer installations in Canada, United States, UK, and Australia.
