Vitalhub Corp. Announces Acquisition of UK Based Alamac Limited
TORONTO, July 05, 2021 (GLOBE NEWSWIRE) — VitalHub Corp. (the “Company” or “VitalHub”) (TSXV: VHI) is pleased to announce today that it has acquired (the “Acquisition”) Alamac Limited (“Alamac”). This is VitalHub’s 11th acquisition completed since 2017 and marks continued expansion into the growing patient flow and operational visibility market.
When asked to comment on the acquisition, VitalHub CEO Dan Matlow said:
“We are delighted to have acquired Alamac, as we continue to progress and execute on our growth strategy, which includes both M&A and organic growth. Alamac has extensive experience building and implementing robust Patient Flow Business Intelligence systems across the NHS, with offerings that are highly synergistic with our Transforming Systems solutions. We believe our existing install base and prospective customers will see immense value through the addition of Alamac’s offering, and through the combination of the two solutions. We look forward to the development of a joint offering in short order, as we continue to enrich our technology platform toward offering best-in-class solutions to address health system needs.”
Founded in 2010, Alamac, a UK based company, provides technological and advisory solutions that assist healthcare organizations across the NHS diagnose and monitor performance, on a daily basis, in order to improve outcomes and bring health and social care teams together. Through the development of proprietary enabling technology solutions, Alamac provides streamlined data analytics to healthcare providers, enabling health systems and hospital teams with actionable intelligence and insights.
Alamac’s platform comprises four key products: Patient Safety, using metrics to ensure the suitability and adequacy of patient care, Patient Plan, providing diagnostics to increase the sustainability and performance of services, Patient Outcomes, enabling the refinement of patient care programs through the measurement of treatment results, and Patient Flow, enabling transparency across emergency care services to maximize resource utilization and capacity balancing. These solutions serve health systems to improve operational performance and governance, elevate patient pathway and quality of care through a redesign of services, and enhance reporting and performance governance.
VitalHub has acquired Alamac, via its wholly-owned subsidiary, The Oakgroup (UK) Limited, for a total cash purchase price of £1,850,000, subject to any post-closing working capital adjustments.
- Alamac has a recurring contracted revenue base of £757,520 (C$1,298,238) which represents almost all of its revenue and adds to VitalHub’s growing Annualized Recurring Revenue (“ARR”) [footnote 1] base.
- VitalHub estimates Alamac’s unaudited EBITDA exceeds 20% of gross recurring revenues.
- VitalHub’s pro forma ARR, including the recently-announced acquisitions of selected assets of Jayex Healthcare Ltd. and S12 Solutions in Q2/2021, was C$20,539,466 in Q1/2021.
Issuance of Stock Options
In addition to the Acquisition, VitalHub announced today the grant of incentive stock options as compensation to certain of its employees, including certain employees joining VitalHub as part of the Alamac acquisition.
Options to purchase up to 245,000 common shares of the Company have been granted at an exercise price of $3.15 per share, as per the terms of the Company’s option plan.
Footnote 1 – Annualized Recurring Revenue (“ARR”) is a non-IFRS measure. The Company defines ARR as the contracted annual renewable software license fees and maintenance services.
ABOUT ALAMAC LIMITED
Founded in 2010, Alamac provides technological and advisory solutions that assist healthcare organizations across the NHS diagnose and monitor performance, on a daily basis, in order to improve outcomes and bring health and social care teams together
Alamac’s platform comprises four key products: Patient Safety, Patient Plan, Patient Outcomes, and Patient Flow, serving health systems to improve operational performance and governance, elevate patient pathway and quality of care through a redesign of services, and enhance reporting and performance governance.
Software for Health and Human Services providers designed to simplify the user experience & optimize outcomes.
VitalHub provides technology to Health and Human Services providers including; Hospitals, Regional Health Authorities, Mental Health, Long Term Care, Home Health, Community and Social Services. VitalHub solutions span the categories of Electronic Health Record (EHR), Case Management, Care Coordination, Patient Flow & Operational Visibility, and DOCit Mobile Apps.
The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently, VitalHub serves 275+ clients across Canada, USA, UK, Australia, Qatar, and Latvia. VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The Company is publicly traded on the TSX Venture Exchange under the symbol “VHI”.
Chief Executive Officer, Director
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer’s business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer’s prospective financial performance or financial position.
The forward-looking information in this news release includes reference to disclosure about the terms of the Acquisition and about Alamac. VitalHub made certain material assumptions, including but not limited to: prevailing market conditions; general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the ability of VitalHub and Alamac to execute and achieve its business objectives, to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include, but are not limited to: adverse market conditions; the inability of VitalHub and Alamac to successfully integrate operations; reliance on key and qualified personnel; and regulatory and other risks associated with the medical and technology industries in general. The foregoing list of material risk factors and assumptions is not exhaustive.
VitalHub assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.