CloudMD Software & Services (TSXV: DOC) appears to be taking a page out of Well Health’s playbook, announcing this morning it will be acquiring a publicly traded firm as it looks to continue to backfill its valuation. The firm has reached a definitive agreement to acquire MindBeacon Holdings (TSX: MBCN).
MindBeacon, a digital mental healthcare platform, is set to be acquired by CloudMD for a total figure of $116 million. Consideration is to consist of cash and shares, with shareholders to receive $1.22 in cash per share held, as well as 2.285 common shares of CloudMD. Collectively, consideration is said to have a value of $4.78 per share, representing a premium of 49% to the volume weighted average price of MindBeacon.
The transaction is claimed to be synergistic, resulting in a clinical health platform that is expected to be a fully integrated health offering that has “significant cross selling opportunities.” Immediate synergies of $2.0 million have reportedly been identified, with the company expecting a consolidated revenue run rate of $185 million upon closing.
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The arrangement remains subject to shareholder approval.
CloudMD last traded at $1.60 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
