CloudMD Software & Services Inc. (OTCMKTS: DOCRF) has spent most of 2020 expanding its physical presence throughout North America, reaching into new markets.
Last week, the company acquired Re:Function Health Group Inc., a leading rehabilitation clinic network, with 7 clinics and 35 behavioral health specialists and allied health professionals across British Columbia. CloudMD will pay $3.4 million through a mix of cash and shares, and a potential $1.15 million in performance-based earnouts. Re:Function Health generated $4.38 million in revenue in 2019.
This acquisition represents a significant addition to the depth and spectrum of healthcare services provided by the CloudMD platform. With Re:Function, CloudMD’s network will include 14 clinics servicing approximately 500,000 patients.
CloudMD is a digital health technology company that offers SaaS and telehealth services, so the new clinics will help it expand those services. This is actually CloudMD’s third acquisition in August, according to Deal Search Online. The company also bought West Mississauga Medical Ltd., a family medicine and specialist medical clinic with eight family doctors and four specialists serving over 100,000 patients for $500,000; the third deal was for a chronic care medical clinic in Mississippi for an undisclosed sum.
In July, CloudMD announced two acquisitions. It acquired Snapclarity Inc., which manages an on-demand digital platform that provides an assessment for an individual’s personal risk of mental health disorders for $2.47 million, and 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.