CloudMD Software & Services Inc. (OTCMKTS: DOCRF), a Canada-based digital health company, has announced two new acquisitions in July. Formerly known as Premier Health Group, Inc., CloudMD has had a pretty successful 2020 so far. It reported record revenues in Q1:20 of $3.1 million, reached over 100,000 subscribers on its telemedicine platform, and now has two new companies to boost its product portfolio and customer base.
On July 16, CloudMD announced it purchased Snapclarity Inc., which manages an on-demand digital platform that provides an assessment for an individual’s personal risk of mental health disorders resulting in a personalized care plan, access to online resources, a clinical health care team, and the ability to match to the right therapists. Snapclarify is based in Kanata, Ontario.
CloudMD acquired Snapclarity for roughly $2.47 million, or $718.5 thousand in cash and $1.7 million in shares at $0.52 a share. CloudMD’s acquisition of Snapclarity will create the first and only Canadian telemedicine company that provides a top-tier digital primary care solution integrated with a clinically proven digital mental health care plan.
Earlier in July, the company acquired 100% of the assets and operations of a medical clinic in Vancouver. The clinic has 24 professionals, including 12 physicians, serves over 60,000 patients, and offers treatment in specialties such as mental health, women’s health, sports medicine, gynecology, and psychiatry. The clinic is also highly equipped for telehealth services. The price was a little more than $500,000.
CloudMD will be able to integrate its own electronic medical records software with the clinic’s telehealth solutions, increasing its revenue flow and customer base. The clinic had revenue of roughly $2.2 million in 2019.
These are the first two deals for the company since CloudMd rebranded itself in February 2018. While under the name Premier Health Group, CloudMD announced modest acquisitions in the Canadian digital health market, according to DSO. acquiring Livecare Health Canada Inc. for $2.26 million in November 2019, and Cloud Practice, Inc. for $5 million in December 2017. With the demand for telemedicine increasing, it’s possible CloudMD will be more aggressive in the M&A market in the next few months.