CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF,
Frankfurt: 6PH) (the “
Company” or
“
CloudMD”), a telehealth company revolutionizing
the delivery of healthcare to patients, is pleased to provide an
update on its North American expansion plans with the closing of
the acquisition of Benchmark Systems Inc.
(“
Benchmark”) and the closing of the acquisition
of a U.S. based chronic care clinic in Mississippi.
Benchmark Acquisition Close
CloudMD, through its subsidiary, CloudMD
Holdings Corporation (Delaware) Inc., has closed its previously
announced acquisition of a majority interest in Benchmark Systems
Inc. (“Benchmark”), a leading cloud-based provider
of fully integrated solutions that automate healthcare workflow
processes including revenue management, practice management and
electronic records management. CloudMD purchased 87.5% of Benchmark
from its parent company and global healthcare and AI leader,
AntWorks Inc.
(“AntWorks”).
AntWorks has retained a 12.5% equity stake and remains a strategic
partner for CloudMD both in the U.S. and globally. The purchase of
Benchmark is immediately accretive to CloudMD and provides a number
of opportunities for optimization to drive further revenue. In the
fiscal year ending March 31, 2020, Benchmark generated
approximately US$4.9 million in revenues with earnings before
interest, taxes, depreciation and amortization (EBITDA) margins of
13%. Approximately 80% of revenue was SaaS based, recurring
revenue.
Benchmark is an innovative cloud-based, health
technology company that has integrated medical practice solutions
including patient portals, personal health records, scheduling
solutions, billing, messaging, eFax, computerized physician order
entry (CPOE) and prescription scripting. Benchmark has a national
U.S. network of 200 clients, 800 physicians, with 5.5 million
patient charts across 35 states. On average, Benchmark processes
approximately $2.5 million in charges (gross) each month.
As CloudMD continues to embark on its U.S.
expansion, the acquisition of Benchmark strengthens CloudMD’s
digital footprint across North America. The acquisition also brings
cross selling synergies across Benchmark’s 200 clinics and its
geographical footprint in 35 states. Benchmark’s suite of software
solutions provides CloudMD with significant distribution channels
into the U.S. and integration opportunities for its other virtual
care solutions such as those offered through Cloud Practice,
Snapclarity and iMD Health. With Benchmark’s experienced leadership
team, and seamless workflow process, CloudMD will not only benefit
from its extensive geographic reach and client commitment, but also
the expertise of developing SAAS systems that support medical
practitioners while complying with specific state requirements.
Terms of the Agreement
In consideration for the purchase of 87.5% of
the outstanding securities of Benchmark, CloudMD has agreed to pay
shareholders aggregate consideration of US$4,375,000 payable in
cash, subject to working capital adjustment.
U.S. Chronic Care Clinic
Acquisition Close
CloudMD also announces that it has closed the
previously announced acquisition to acquire 100% of a U.S. based
medical clinic serving chronic care patients as a part of its
broader strategy for entering the U.S. market with its
comprehensive suite of telehealth products.
The acquisition is an important and strategic
part of CloudMD’s cross-border expansion plan into the United
States. One of the key goals for CloudMD is to start providing a
single comprehensive stop for longitudinal healthcare for chronic
and complex care patients in the U.S. These patients often have
multiple concurrent diseases such as diabetes, hypertension,
vascular and heart disease. The opportunity for expansion with this
acquisition is significant, as in the U.S alone, 90% of the $3.5
Trillion spent annually on health care is spent on chronic pain and
mental health issues (Source: CDC). CloudMD’s integrated telehealth
technology will be used in the clinic practice to provide patient
centric, continuity of care.
The clinic is managed by Dr. Fred Roh and Curtis
Gibson. Dr. Roh has over 30 years’ experience in the U.S.
healthcare market having been founder of Healthcare Networks of
America, LLC, a 15,000 member physician organization that provides
services to 24 million patients across the U.S. Using CloudMD’s
telehealth platform, patient management software and virtual kiosk
carts and kits, Dr. Roh will also help with expansion plans to
build a network of telehealth powered satellite clinics covering
large areas of underserviced areas across the U.S. Curtis Gibson
oversees the management of the clinic in Mississippi and will be
involved in the expansion of CloudMD services within the
southeastern U.S. Mr. Gibson has over 30 years’ experience in
investment banking and business development for medical
clinics.
Terms of Agreement
In consideration for the purchase of a 100%
interest of the U.S. based medical clinic, CloudMD has agreed to a
cash payment to the shareholders, along with additional working
capital as required.
About CloudMD Software
& Services
CloudMD is digitizing the delivery of healthcare
by providing a patient centric approach, with an emphasis on
continuity of care. The Company offers SAAS based health technology
solutions to healthcare providers across North America and has
developed proprietary technology that delivers quality healthcare
through a holistic offering including hybrid primary care
clinics, specialist care, telemedicine, mental health support,
educational resources and artificial intelligence (AI). CloudMD
currently services a combined ecosystem of over 500
clinics, almost 4000 licensed practitioners and 8 million patient
charts across North America.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD" Chief Executive Officer
FOR ADDITIONAL INFORMATION CONTACT:
Julia Becker investors.cloudmd.ca Email:
investors@cloudmd.ca
Forward Looking Statements
This news release contains forward-looking
statements that are based on CloudMD’s expectations, estimates and
projections regarding its business and the economic environment in
which it operates, including with respect to its business plans.
Although CloudMD believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and
involve risks and uncertainties that are difficult to control or
predict. Therefore, actual outcomes and results may differ
materially from those expressed in these forward-looking statements
and readers should not place undue reliance on such statements.
These forward-looking statements speak only as of the date on which
they are made, and CloudMD undertakes no obligation to update them
publicly to reflect new information or the occurrence of future
events or circumstances, unless otherwise required to do so by
law.
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this
release.
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