VitalHub Expands with Acquisition of Strata Health for C$32.3 Million
Deal News | Oct 30, 2024 | Globenewswire
VitalHub Corp., a notable software provider for health and human services, has acquired Strata Health Solutions Inc., an international leader in patient flow solutions, for C$32.3 million. This deal marks VitalHub's 20th and largest acquisition, enhancing its position in the electronic referral market—a segment poised for significant growth globally. Strata Health, based in Canada, offers software that facilitates efficient patient transitions in healthcare, serving over 500 hospitals and 80 health systems across Canada, the UK, the US, and New Zealand. The transaction was finalized with a cash payment of C$18.6 million and the issuance of 1,480,726 common shares of VitalHub. Additionally, there's a performance-based earn-out of C$4.5 million possible till June 2027. For the fiscal period ending June 2024, Strata Health reported revenue of C$12.7 million with an annual recurring revenue of C$12.3 million by acquisition date. Both VitalHub's CEO, Dan Matlow, and Strata Health's CEO, Peter Smith, emphasized the strategic benefits and synergies anticipated from this acquisition, with plans to expand international healthcare solutions. B.C. Ziegler and Company advised Strata Health on this transaction.
Sectors
- Healthcare Technology
- Software as a Service (SaaS)
Geography
- Canada – Both VitalHub and Strata Health are based in Canada, highlighting its relevance.
- United Kingdom – Strata Health operates in the UK, pointing to its geographical reach and market penetration.
- United States – The US is one of Strata Health's key markets, necessitating its inclusion.
- New Zealand – Strata Health's presence in New Zealand expands its international operations, relevant to the article.
Industry
- Healthcare Technology – The article discusses the acquisition of Strata Health, which provides digital solutions for patient care transitions, directly related to the Healthcare Technology sector.
- Software as a Service (SaaS) – VitalHub's offerings, including electronic health records and patient flow solutions, classify it within the SaaS industry.
Financials
- C$32.3 million – The total up-front consideration for the acquisition of Strata Health.
- C$18.6 million – The cash payment made at the acquisition closing.
- 1,480,726 common shares – Shares of VitalHub issued as part of the acquisition payment.
- C$4.5 million – Potential performance-based earn-out payable contingent on certain conditions.
- C$12.7 million – Strata Health's estimated total revenue for the 12-month period ending June 30, 2024.
- C$12.3 million – Strata Health's annual recurring revenue as of the acquisition date.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| VitalHub Corp. | Acquiring Company | Company | A Toronto-based company providing software solutions for health and human services. |
| Strata Health Solutions Inc. | Target Company | Company | A Canadian provider specializing in patient flow solutions with international reach. |
| B.C. Ziegler and Company | Financial Advisor | Company | A healthcare specialty investment bank advising Strata Health. |
| Dan Matlow | CEO of VitalHub | Person | The Chief Executive Officer of VitalHub who commented on the acquisition. |
| Peter Smith | President and CEO of Strata Health | Person | The acting President and CEO of Strata Health during the acquisition. |