VitalHub Corp. Announces Acquisition of Community Data Solutions
TORONTO, Oct. 11, 2022 (GLOBE NEWSWIRE) — VITALHUB CORP. (TSX: VHI) (the “Company” or “VitalHub”) is pleased to announce today that it has acquired (the “Acquisition”) QWAD Community Technologies Pty Ltd, doing business as “Community Data Solutions” (“CDS”), a company incorporated and conducting business in Australia.
VitalHub has acquired CDS, in an all-cash acquisition by its wholly-owned subsidiary, VitalHub Australia Pty Ltd, for a purchase price at closing of AUD $8,197,155 which was after customary closing and working capital adjustments.
For the 12-month period ending September 30, 2022, CDS has estimated revenue of approximately AUD $4,000,000 of which AUD $2,800,000 was identified to be recurring in nature with Adjusted EBITDA of approximately AUD $1,300,000. Adjusted EBITDA, a non-IFRS measure, is defined as earnings before interest, taxation, depreciation, amortization, share based compensation, business acquisition, restructuring and integration costs.
Dan Matlow, VitalHub CEO, commented on the Acquisition stating, “Although we already have some great customers in Australia, the acquisition of CDS provides us with a strong foundation to continue to accelerate our growth in a new market. We believe that Australia represents a great opportunity for expansion for all our product lines and we now have a fully operational organization as a basis to build upon.”
“As Community Data Solutions grew in the last three to four years, we had multiple enquiries from organisations seeking to purchase CDS. We are very pleased to have found a partner in VitalHub that understands our unique culture and offering in the Australian market and seeks to expand upon this with their other internationally deployed software solutions. We believe this will greatly complement the diversity of products available in the Community Services and Health sectors in Australia and New Zealand which ultimately benefits the day-to-day end users, administrators, and both public and private funding sources,” said Greg Were, co-founder of CDS.
“We look forward to our new journey with VitalHub. We believe the innovation and broader product suite of software solutions that VitalHub will bring to this market will provide healthy competition and excellent value for money for our customers and for the broader Community Services and Health sector organisations,” said Tom Twelftree, CEO of CDS.
ABOUT CDS
Founded in 2010 and based in Adelaide, South Australia, CDS offers an online case management system and supporting products which are used to support many critical workflows in the Community Services sector including counselling, case work, anti-poverty programs, foster care, aged care, and disability services. The product suite includes customer relationship management, business intelligence, and outcomes management tools as well as integration with timesheet and rostering functionalities. CDS serves 350+ agencies located in all states and internal territories of Australia with its 19 staff based in South Australia and New South Wales.
ABOUT VITALHUB
Software for Health and Human Services providers designed to simplify the user experience and optimize outcomes.
VitalHub provides technology to Health and Human Services providers including Hospitals, Regional Health Authorities, Mental Health, Long Term Care, Home Health, Community and Social Services. VitalHub solutions span the categories of Electronic Health Record (EHR), Case Management, Care Coordination & Optimization, and Patient Flow & Operational Visibility solutions.
The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently VitalHub serves more than 400 clients across Canada, USA, UK, Australia, the Middle East, and Europe.
VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The VitalHub team comprises more than 300 team members globally. The Company is publicly traded on the Toronto Stock Exchange (TSX) under the symbol “VHI”.
CONTACT INFORMATION
VitalHub Corp.
Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer’s business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer’s prospective financial performance or financial position.
The forward-looking information in this news release includes reference to disclosure about the terms of the Acquisition, about CDS, including its historical revenue and about potential synergies among existing offerings in the issuer’s electronic health records products as well the potential for the international application of CDS’s product. VitalHub made certain material assumptions, including but not limited to: prevailing market conditions; general business, economic, competitive, political and social uncertainties; and the ability of VitalHub and CDS to execute and achieve their business objectives, to develop the forward-looking information in this news release. There can be no assurances that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include, but are not limited to: adverse market conditions; the inability of VitalHub and CDS to successfully integrate operations; reliance on key and qualified personnel; and regulatory and other risks associated with the medical and technology industries in general. The foregoing list of material risk factors and assumptions is not exhaustive.
VitalHub assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.
