NeuPath Health (NPTH.V) has announced a strategic transaction to acquire KumoCare, a virtual care platform, to further expand the Company’s virtual care and telemedicine offerings.
“The acquisition of KumoCare and its telemedicine platform is an important step forward in the advancement of our virtual care strategy which will allow us to elevate the patient care experience and unlock additional revenue generating opportunities in both the public and private healthcare segments,” stated Grant Connelly, CEO of NeuPath.
KumoCare provides technology services to support home visiting and telemedicine doctors, personal support workers, and nurses, to name just a few. In doing so, KumoCare’s services help family doctors ensure that their patients receive quality primary care from the comfort of their own homes. Additionally, KumoCare offers mobile telemedicine services through its KumoCare app, available on both the AppStore for iOS devices and Google Play for Android devices. Through its advanced matching algorithms, KumoCare’s mobile app is able to match users with doctors capable of answering questions via video chat.
As a whole, the global care model changed out of necessity in 2020 following the onset of the COVID-19 pandemic. In particular, the virtual care and telemedicine sectors grew exponentially and were seen as both clinically useful and economically viable. In 2020, NeuPath’s virtual care visits made up almost 10% of the Company’s total consultations. Reduced wait times, ease of access as well as no physical constraints, have all contributed to the explosion of the telemedicine market, which is expected to reach USD$298.9 billion by 2028.
“NeuPath’s goal is to be able to deliver the best quality care, as quickly and efficiently as possible, and wherever possible, while improving outcomes. This transaction enables us to achieve those goals by providing the best tools and a complete service offering to our patients and the physicians who deliver that care. We encourage you to explore KumoCare’s offering on their website (www.kumocare.com) and their app…,” continued Mr. Connelly.
Under the terms of the definitive agreement, NeuPath has agreed to pay a total consideration of up to $1.5 million. As part of the KumoCare acquisition, Ben Fagan will be joining NeuPath as Chief Technology Officer. Prior to joining NeuPath, Mr. Fagan spent ten years in the financial sector, designing and managing the development of complex capital markets software for TD Securities and BMO Capital Markets. NeuPath has also appointed Jeff Zygouras as interim Chief Financial Officer, following the resignation of Stephen Lemieux, NeuPath’s CFO who is set to resign on June 30, 2021.
