CloudMD Software & Services (DOC.V) completed their acquisition of employee and student assistance program provider, Aspiria today, according to a press release.
At present, Aspiria has a reach of over 750 organizations, with 1 million employees, students and their families internationally. This acquisition bumps CloudMD to the fourth largest EAP platform in Canada with a network of over 7,500 psychologists and psychotherapists covering over 3 million people.
“We are very excited to close the acquisition of Aspiria and welcome the team to our EHS Division. The addition of Aspiria enables us to support employers with the launch of our integrated mental health support solution, providing individuals access to important assessment and triage to navigate their mental health issues with the right treatment plan. Rising mental health issues in the workplace requires an expansion of what employers currently understand as EAP which includes more assessments, comprehensive treatment plans and progressive measurement empowering people to get the help they need and in turn reduce casual absenteeism and disability within organizations,” said Karen Adams, chief health innovation officer and global head of enterprise health solutions.
CloudMD is a tech company offering a virtual means for patients to speak to doctors without the necessity of leaving their homes. They’ve built an application which will reach out to both physicians and mental health practitioners. Needless to say, this has proven to be a definite benefit to patients who may not necessarily want to risk sitting in crowded waiting rooms among legitimately sick people (some of who may have COVID-19) for a 15-minute consultation with an exhausted clinician or general practitioner. And that’s, of course, if they even have a doctor in their area. Plenty of Canadians don’t.
CloudMD currently services:
- 7,000 psychiatrists,
- 4,500 therapists and counsellors,
- 4,000 psychologists,
- 22,000+ family physicians,
- 34,000+ medical specialists,
- 1,500+ allied health professionals,
- 500+ clinics,,
- 3 million+ individuals across North America.
This acquisition allows the company to introduce a mental health solution for employees and students, who can now get access to traditional EAP services as well as virtual access to multidisciplinary services like iCBT, Women’s Mental Health, Oncology support and other solutions dealing with mild, moderate and chronic mental health issues.
The company anticipates that the addition of Aspiria to their EHS Division will contribute to their already healthy gross margins, and include an organic growth rate of over 20%.
In consideration for the purchase of 100% of the outstanding securities of Aspiria, CloudMD has paid shareholders of Aspiria aggregate consideration of $3 million payable as follows: (i) $1.2 million in cash, subject to a working capital adjustment; (ii) $1.05 million in common shares of the Company; and (iii) a performance-based earnout of $0.75 million, which is payable in common shares of the Company after a period of 1 year. All common shares issued pursuant to the acquisition will be issued at a deemed price of $2.28 per common share.
CloudMD has enjoyed an 11% bump in price today on the news, and is now trading at $2.12.