Vitalhub (VHI.V) announced the acquisition of Jayex Health Limited’s (JHL.ASX) on-premise hospital queue management system in a mixed cash and shares deal in a press release today.
The Jayex System helps manage patient flow from admission to discharge, which can often be a source of agitation for time and cash strapped medical professionals—especially during a pandemic. It’s presently installed at 60 customer sites in the United Kingdom and Australia, and brings in an annual recurring revenue of close to £420,000. It also bears a lot of similarities with VitalHub’s pre-existing “Intouch with Health” offering, which they picked up in August of last year.
“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,” said Dan Matlow, VitalHub’s CEO.
VitalHub is a provider of medical technology designed primarily to make the quality of service of medical professionals. Their customer base includes hospitals, regional health authorities and organizations involved in providing mental health services, long term care, home health, community and social services. They have continued to expand their customer base beyond patient flows to include electronic health records, case management, care coordination, patient flow and operational visibility and a DOCit Mobile App.
A former client of ours from a few years ago, the company has enjoyed substantial bounces over the past few years, developing considerably using their two-pronged growth strategy and aggressive M&A. The Toronto based company provides services for over 275 clients across Canada, the United States, the United Kingdom, Australia, Qatar and Latvia. They also have a research and development hub set up in Sri Lanka.
The deal itself will include a purchase price of £1.3 million, divided into £1.04 million in cash and the rest in shares, at CAD$2.915 per share. Also, Jayex can expected earn-out based on revenues for the system of an extra £1 million two years after the deal closes.
Vitalhub’s down a penny today and presently trading at $2.96.
—Joseph Morton
