CloudMD Software & Services (DOC.V) closed the acquisition of integrated employee assistance services solution, HumanaCare Organization Resources, today, according to a press release.
The acquisition is actually for Humanacare’s parent company, First Care Services of Canada, which provides holistic, physical and mental health support for employees and their family members. It’s funded by employers to give access to physical and mental health support services, with a client base of over 5,000 corporate clients, 1 million employees and their family members with a clinical network of over 3,500 clinicians.
Currently, HumanaCare has multi-year agreements to service fortune 500 clients, leading corporations and advisors. The solution uses nurse triage to support mental health and short-term incidental issues including counselling, financial stress, nutrition, legal and eldercare consultation. HumanaCare’s programs include, YourNurse, Chronic Disease Management, Eldercare, Medical Second Opinion and Disability Support Services.
HumanaCare’s, including the organization resources platform, current annual revenue is approximately $3.3 million with EBITDA (earnings before interest, taxes, depreciation and amortization) margins greater than 19%. The acquisition will be immediately accretive to CloudMD, which the company believes will contribute to their revenue stream and increasing their EBITDA margin through cost savings achieved through scaling their operations.
The past three months have been somewhat turbulent for DOC, which has been up and down more ski hills during the pandemic in terms of price fluctuation than actual skiers on hills in British Columbia. They’re presently trading at $2.27—down from an October high in the $3.30 range.
Here’s a YouTube clip from when this deal was initially announced.