CloudMD Software & Services (DOC.V) closed its acquisition of healthcare provider to employers, Oncidium, earlier this week, according to a press release.
The deal gives CloudMD the ability to produce an ecosystem of healthcare systems through occupational health, medical management and assessment services. The pandemic has put pressure on employers to boost their health and safety, producing new challenges in the workplace. DOC wants to solve them.
“With over 25 years in the employer healthcare market, Oncidium is an ideal fit with the overall CloudMD strategy for the Enterprise Health Solutions Division. We are at a pivotal time where employers are dependent on their solution providers to support their workforce’s health and wellness issues, and to assist in providing leadership and guidance with respect to their ongoing, increasing healthcare costs,” said Luciano M. Barbuto, CEO of Oncidium.
We originally announced this deal when it dropped back in April.
CloudMD is primarily a telemedicine company offering virtual doctor visits to folks who either can’t get to the doctor’s office due to mobility, age or geography, or who would prefer to stay home rather than run the risk of catching COVID-19 (or any other disease) from sitting in a doctor’s office surrounded by sick people. It’s a fairly sound business niche for an enterprising company to fill, and Oncidium’s addition isn’t exactly much of a departure from the company’s core goals.
There’s cross selling opportunities through a network of 5,500 corporate clients and over 5 million people. Oncidium offers a competitive advantage compared to its peers in the industry due to its platform, and its function of addressing whole-person healthcare through multiple different categories, from assessment, triage and support services across mental health, specialist, healthcare navigation and both short-term and long term support. As well as educational resources.
Oncidium has built a difficult-to-replicate ecosystem of over 500 clients servicing more than 2 million employees across Canada and more than 2,000 health care providers and medical assessors. The capabilities brought on by the addition will play a key role in the company’s Enterprise Health Solutions Division and provide Oncidium’s existing clients expanded access to DOC’s healthcare platform.
“It is a time of rapid innovation and accelerated adoption of digital healthcare services by employers. At the core of our offering is that employers can choose to offer their employees a solution that encompasses medical management through health and safety, onsite medical management and navigation with a focus on cost-effective personalized care plans,”said Karen Adams, president of CloudMD.
And the finances aren’t bad, either.
CloudMD expects the acquisition to be immediately accretive. Oncidium has a revenue run rate of $54 million with an adjusted earnings before interest tax depreciation and amortization (EBITDA) of 10%. Itw ill also enable revenue and margin expansion for the Enterprise Health Solutions division with an annual revenue of $70 million and a gross margin of 38%, with an adjusted EBITDA margin of 10%. Consolidated, DOC’s revenue is approximately $140 million with an overall margin of 35% and a positive adjusted EBIDTA.