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Highlights:
- VitalHub Corp. successfully acquires MedCurrent Corporation, a leader in Clinical Decision Support.
- The acquisition strengthens VitalHub’s offerings with MedCurrent’s OrderWise platform, enhancing patient care efficiency.
- The deal reflects VitalHub’s commitment to innovation and expansion in the healthcare technology sector.
VitalHub Corp. (TSX:VHI) (OTCQX:VHIBF) has announced the successful completion of its acquisition of MedCurrent Corporation, a physician-founded company focused on Clinical Decision Support. Based in Toronto, MedCurrent specializes in enhancing the appropriateness of orders for medical imaging tests, primarily through its flagship product, OrderWise. This innovative platform integrates evidence-based guidelines directly at the point of care and currently serves over 80 customers across Canada, the UK, the US, and Australia.
The acquisition aligns seamlessly with VitalHub’s strategic vision of integrating cutting-edge technology solutions designed to streamline healthcare delivery. With MedCurrent’s OrderWise now part of its suite of products, VitalHub aims to provide a more comprehensive solution that not only improves patient care but also enhances the efficiency of healthcare providers. By combining OrderWise with VitalHub’s existing Patient Flow software, the company is poised to strengthen its market positioning and expand its business prospects.
VitalHub acquired MedCurrent for a total cash consideration of $12.0 million. After accounting for working capital adjustments of $3.7 million, the net up-front payment amounts to $8.3 million. Additionally, the acquisition includes a future conditional earn-out of up to $21.9 million, subject to exchange rate adjustments and based on MedCurrent’s annual performance over the next 36 months. For the eight-month period ending August 31, 2024, MedCurrent reported estimated revenue of $2.7 million, with an annualized recurring revenue of approximately $2.3 million at the time of closing the acquisition on October 7, 2024.
Dan Matlow, CEO of VitalHub, expressed enthusiasm about welcoming the MedCurrent team. He stated, “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.” This statement reflects VitalHub’s forward-looking approach as it integrates new technologies and solutions into its existing framework.
The acquisition of MedCurrent not only enhances VitalHub’s technological capabilities but also aligns with its goal of creating a more cohesive healthcare delivery system. The integration of OrderWise into VitalHub’s offerings will facilitate better decision-making by healthcare professionals, ultimately improving patient outcomes. By emphasizing evidence-based guidelines at the point of care, healthcare providers can reduce unnecessary imaging tests, thereby optimizing resource utilization.
Furthermore, the geographic alignment between VitalHub and MedCurrent opens up new business opportunities across the expanding Patient Flow product portfolio. As healthcare systems continue to evolve, the demand for integrated solutions that enhance decision-making and streamline processes is likely to grow.
VitalHub was advised by Torkin Manes LLP during the transaction, while Morrison Park Advisors and IMAP Netherlands served as exclusive financial advisors for MedCurrent. Norton Rose Fulbright Canada LLP provided legal advice to MedCurrent throughout the acquisition process.
