VitalHub Corp. Announces Agreement to Acquire On-Premise Hospital Queue Management Business From Jayex Healthcare Limited
TORONTO, April 12, 2021 (GLOBE NEWSWIRE) — April 12, 2021 – VITALHUB CORP. (TSXV: VHI) (the “Company” or “VitalHub”), is pleased to announce today it has entered into an agreement (the “Agreement”) with Jayex Healthcare Limited (ASX: JHL) (“Jayex”), a leading UK and Australian e-health provider of integrated SaaS healthcare services delivery platforms, to purchase the assets (the “Acquisition”) of Jayex’s on-premise hospital queue management business segment (“Jayex System”).
Total consideration to be paid by VitalHub is expected to be £1.3M (the “Purchase Price”). Jayex will receive the Purchase Price as (i) £1.04M in cash and (ii) £0.26M in VitalHub common shares (the “Shares”). The Shares are to be issued at CAD$2.915 per Share, and will result in 150,078 Shares being issued.
In addition, for 24 months after closing of the Acquisition, Jayex may receive an earn-out based on earned revenues of the Jayex System, capped at a total of £1M.
The Company currently has 36,146,564 Common Shares issued and outstanding. Upon delivery of the Shares, the Company will have a total 36,296,642 issued and outstanding common shares. VitalHub anticipates that the Acquisition will close in approximately three weeks and is subject to customary closing conditions including ongoing due diligence of the Jayex System by VitalHub.
Dan Matlow, VitalHub CEO, commented that “we are excited to welcome Jayex customers into VitalHub’s subsidiary “Intouch with Health”. With this acquisition VitalHub will now significantly increases its number of customers using at least one module of our patient journey solutions within the UK and Australia. This deal affords VitalHub the opportunity to introduce the Jayex customer base to our entire product portfolio”.
ABOUT THE JAYEX SYSTEM
The Jayex System is an on-premise hospital queue management system, much like VitalHub’s “Intouch with Health” product offering, and is installed at almost 60 customer sites in the UK and Australia, representing recurring annual software revenue of approximately £420K.
VitalHub provides technology to Health and Human Services providers designed to simplify the user experience & optimize outcomes. VitalHub customer organisations include Hospitals, Regional Health Authorities and organizations providing services relating to 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 disclosure about the terms of the Acquisition. VitalHub made certain material assumptions, including but not limited to: Jayex annual revenues, 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 Jayex 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 Jayex to complete the Acquisition on the terms disclosed in this news release, or at all; 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.