CloudMD Divests Non-Core U.S. Electronic Medical Records and Practice Management Business

VANCOUVER, British Columbia, July 04, 2023 (GLOBE NEWSWIRE) -- CloudMD Software & Services Inc. (TSXV: DOC, OTCQX: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), an innovative health services company transforming the delivery of care, today announced that it has closed the sale of its U.S. based Electronic Medical Records (“EMR”), Practice Management (“PM”), and Revenue Cycle Management (“RCM”) assets for approximately US$6.3 million. The sale was pursuant to a definitive agreement (the “Agreement”) with a subsidiary of N. Harris Computer Corporation (“Harris”) and follows the sale of CloudMD’s Canadian EMR business in October 2022.

Karen Adams, CEO of CloudMD, commented, “We continue to successfully execute our strategy of focusing on our higher growth and margin businesses while surfacing value from non-core assets in our portfolio. The leadership team’s focus is on growing our core Health and Wellness Services business and executing on our expanded pipeline in our Health and Productivity Solutions business, particularly our remote patient monitoring platform. This will further enable us to deliver on our path to profitability with deployment of capital and resources to high growth opportunities.”  

Transaction Details

The consideration to be paid by Harris in connection with the sale is US$6.3 million. Approximately US$5.5 million of the consideration was paid on closing (subject to adjustments for working capital) with the balance held as a customary holdback.

INFOR Financial Inc. acted as exclusive financial advisor and Cassels Brock & Blackwell LLP acted as legal advisor to CloudMD.

About N. Harris Computer Corporation (Harris)

Harris acquires vertical market software businesses, manages them using industry best practices, and builds them for the future. Through acquisitions, Harris has grown extensively from its roots in the utilities, local government, education, and healthcare sectors to operate over 170 businesses globally across more than twenty industries. Harris is an operating group of Constellation Software Inc. (TSX: CSU), one of North America’s most active acquirers of software businesses.

About CloudMD Software & Services

CloudMD is an innovative North American healthcare service provider focused on empowering healthier living by combining leading edge technology with an exceptional national network of healthcare professionals. Every day, our employees and health care providers live our values of delivering excellence, collaboration, connected communication and accountability to solve complex health problems. CloudMD’s industry leading workplace health and wellbeing solution, Kii, supports members and their families with a personalized and connected healthcare experience across mental, physical and occupational health. Kii delivers superior clinical health outcomes, consistent high engagement, and measurable ROI for payers such as employers, educational institutions, associations, governments, and insurers. CloudMD is also a market leader in workplace absence management through data-driven prevention, intervention and return to work programs.