CloudMD Closes U.S. Acquisitions of Benchmark Systems Inc. and First U.S Based Chronic Care Clinic

VANCOUVER, British Columbia, Oct. 26, 2020 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telehealth company revolutionizing the delivery of healthcare to patients, is pleased to provide an update on its North American expansion plans with the closing of the acquisition of Benchmark Systems Inc. (“Benchmark”) and the closing of the acquisition of a U.S. based chronic care clinic in Mississippi.

Benchmark Acquisition Close

CloudMD, through its subsidiary, CloudMD Holdings Corporation (Delaware) Inc., has closed its previously announced acquisition of a majority interest in Benchmark Systems Inc. (“Benchmark”), a leading cloud-based provider of fully integrated solutions that automate healthcare workflow processes including revenue management, practice management and electronic records management. CloudMD purchased 87.5% of Benchmark from its parent company and global healthcare and AI leader, AntWorks Inc. (“AntWorks”). AntWorks has retained a 12.5% equity stake and remains a strategic partner for CloudMD both in the U.S. and globally. The purchase of Benchmark is immediately accretive to CloudMD and provides a number of opportunities for optimization to drive further revenue. In the fiscal year ending March 31, 2020, Benchmark generated approximately US$4.9 million in revenues with earnings before interest, taxes, depreciation and amortization (EBITDA) margins of 13%. Approximately 80% of revenue was SaaS based, recurring revenue.

Benchmark is an innovative cloud-based, health technology company that has integrated medical practice solutions including patient portals, personal health records, scheduling solutions, billing, messaging, eFax, computerized physician order entry (CPOE) and prescription scripting. Benchmark has a national U.S. network of 200 clients, 800 physicians, with 5.5 million patient charts across 35 states. On average, Benchmark processes approximately $2.5 million in charges (gross) each month.

As CloudMD continues to embark on its U.S. expansion, the acquisition of Benchmark strengthens CloudMD’s digital footprint across North America. The acquisition also brings cross selling synergies across Benchmark’s 200 clinics and its geographical footprint in 35 states. Benchmark’s suite of software solutions provides CloudMD with significant distribution channels into the U.S. and integration opportunities for its other virtual care solutions such as those offered through Cloud Practice, Snapclarity and iMD Health. With Benchmark’s experienced leadership team, and seamless workflow process, CloudMD will not only benefit from its extensive geographic reach and client commitment, but also the expertise of developing SAAS systems that support medical practitioners while complying with specific state requirements.