CloudMD Software and Services (DOC.V) announced they have signed a binding agreement Oncidium, a leading employer healthcare provider.


Oncidium has an ecosystem built over 20 years that includes over 1,000 healthcare providers and 500 clients more than 2 million employees.


To acquire Oncidium, CloudMD is paying $30 million in cash and $38 million in common shares at $2.30 a share (~16.52 million common shares). There is also a performance-based earnout of up to $32 million over 3 years, the details of which were not included in the press release.

“This transformative acquisition was another highly strategic decision and part of our overall product roadmap and positions CloudMD as a leader in the employer healthcare market. The Oncidium team has built an incredible healthcare offering and the company has become one of the leading health services provider to the employer marketplace. I am incredibly excited for our future growth as we continue building out our healthcare capabilities that now includes: brick-and-mortar clinics, allied care, virtual care, a leading mental health solution, direct-to-consumer offerings and a robust and expansive Enterprise Health Solutions division. We are uniquely positioned to deliver and drive shareholder value,” stated Dr. Essam Hamza, CEO of CloudMD.

This acquisition, which will cost CloudMD up to $100 million, and comes just a few days after they announced they were acquiring Aspiria. Once all these acquisitions are finalised, Cloud MD will have a network that includes over 5 million employees. In 2020, less than 15 million people in Canada were employed on a full-time basis.


CloudMD is very excited about the prospective growth on Oncidium’s $37 million revenue from the last twelve months. They expect a compound annual growth rate (CAGR) of 30% for the next 3 years, which would put their annual revenue above $80 million by 2024.

“The trend lines in Canada and across the industrialized world are clear: the employer is increasingly absorbing employee healthcare costs and is becoming more engaged in managing the related costs and outcomes. We believe that there will be tremendous opportunities for existing CloudMD services to be delivered to Oncidium’s excellent employer client base, so that collectively we can continue to support their growing needs. With the CloudMD team, I look forward to continuing to develop, expand and deliver science based precision health solutions to Employers that will in turn improve the lives of Canadians,” commented Dr. Lu Barbuto, CEO of Oncidium.

CloudMD hopes that through integration they can provide more efficient and effective healthcare management and services for their existing clients, while at the same time attracting new clients.

“We have already identified immediate synergies which will drive further revenue and margin growth and we will continue to unlock growth opportunities throughout the integration. This acquisition allows us to take the leadership position in the employer marketwith a fully-integrated product offering which addresses all aspects of employee health and wellness and ensures optimization of employer spend,” added Karen Adams, Cloud MD’s Chief Health Innovation Officer & Global Head of Enterprise Health Solutions.

Following the news, the price of DOC.V shares rose 7 cents to $2.13.

Written By:

Piers Eaton

Canadian, English, and American writer, interested in human behavior. Can usually be found on reading or on a walk. Passable musician and decent snowboarder.

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