CloudMD to Acquire Oncidium, One of the Largest Healthcare Providers to the Employer Market in Canada
Increases CloudMD’s annualized revenue run rate to over $120 million with positive Adjusted EBITDA
Oncidium is one of Canada’s leading health management companies with a loyal client base of over 500 corporate and public sector clients across various industries
- This transformative acquisition expands CloudMD’s National footprint to include 5,500 clients, 8,500 direct healthcare providers and over 5 million individual lives touched
- The $100 million transaction value (including the full performance-based earnout) represents CloudMD’s largest acquisition to date; upfront consideration implies a valuation multiple of ~1.8x last twelve months (“LTM”)1 sales
- Oncidium has a strong financial profile with LTM revenues of $37 million, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)2 margin of 14% and a current 4-month revenue run rate3 in excess of $40 million annualized
- Oncidium has significant growth projections with 3-year revenue CAGR of more than 30% and a blue-chip client base that includes many of Canada’s Fortune 500 Companies
- The employer market is the fastest growing area in healthcare spending and is expected to grow 130% by 20254
- This acquisition accelerates the positioning of CloudMD as the leading service provider in the employer market and creates opportunities for synergies and cross sale of existing services
- CloudMD will host a webinar today to discuss the acquisition at 11am EST (8am PST)
VANCOUVER, British Columbia, April 08, 2021 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a healthcare technology company revolutionizing the delivery of care, is excited to announce that it has signed a binding agreement to acquire Oncidium Inc. (“Oncidium”), one of Canada’s leading healthcare providers to employers. Oncidium has built a difficult-to-replicate ecosystem of over 500 clients, more than 1,000 health care providers and medical assessors, and its clients with over 2 million employees across the country.
The employer market vertical is the fastest growing area in healthcare and this acquisition makes CloudMD a Canadian leader in the space. Built on over 20 years of experience in the employer health market, Oncidium is one of Canada’s leading health management companies with clients from a number of Canada’s Fortune 500 Companies. Oncidium’s services focus on reducing occupational absence by delivering solutions that improve the health and wellness of employees. Oncidium’s services include solutions that support absentee management, short-term and long-term disability, workers’ compensation claims management, mental health assessment and evaluation services that focus on prevention, accommodation, and recovery. Oncidium’s services are delivered virtually, on-demand and on-site through its network of over 1,000 healthcare professionals, assessors and medical centers nationally.
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