It was another busy week for CloudMD Software & Services Inc. (OTCMKTS: DOCRF). The Canadian digital health company announced two acquisitions, giving the company a total of nine deals in 2020, according to search results in HealthCareMandA.com Deal Database. CloudMD offers SaaS-based health technology solutions to medical clinics across Canada and provides services to a combined ecosystem of 376 clinics, more than 3,000 licensed practitioners, and almost 3 million patient charts across its servers. It was formed in 2013 and was formerly known as Premier Health Group.
On October 21, CloudMD announced the acquisition of Canadian Medical Directory, Canada’s largest directory of medical professionals, including 91,000 practicing physicians and 10,000 residents and nurse practitioners across the country. The robust, multi-layered database is unique, as no other direct competitor has a SaaS platform that collects and vends the data in such a highly segmented way. CloudMD will integrate it into its Juno EMR, billing, virtual care and telehealth platforms. This acquisition will be immediately accretive to CloudMD’s top line. CloudMD purchased the business for $1.48 million (4.33x revenue and 6.68x EBITDA).
Following that announcement, on October 22 CloudMD added Medical Confidence, a healthcare navigation platform, for $6 million. The combined company will offer a multi-functional platform that addresses total health and provides a direct and existing pathway into corporations and insurers. The acquisition will be immediately accretive to CloudMD as Medical Confidence generated approximately $2 million in revenues with EBITDA margins exceeding 26% over the last fiscal year ended March 2020.
Although CloudMD is a big player in the Canadian digital health market, in early August the company expanded into the United States with the purchase of a chronic care medical clinic in Mississippi for an undisclosed sum. The clinic is a launchpad for CloudMD to create a network of telehealth-powered satellite clinics across the U.S., so expect more announcements in the future.