CloudMD Acquires Majority Interest in Innovative U.S. Based Provider of Cloud Based Practice Management and Electronic Health Records with US$4.9M in Sales
Established network of 200 clients, 800 physicians, 5.5 million patient charts across over 35 states in the U.S.
- CloudMD to acquire 87.5% of Benchmark Systems, a proprietary cloud-based practice management, billing and telehealth enabled electronic health record provider powered by artificial intelligence (AI)
- The acquisition is immediately accretive as it provides CloudMD with expansion, distribution and optimization opportunities throughout the U.S. in supporting a patient centric model
- Benchmark is a profitable, well-established business generating US$4.9 million and over 13% EBITDA annually from SAAS based, recurring revenue
- CloudMD will have access to leading, global AI technical teams and software to further pursue the U.S. market
Vancouver, BC, September 28, 2020 - CloudMD Software & Services Inc. (TSXV: DOC, OTCQB: DOCRF, Frankfurt: 6PH) (the “Company” or “CloudMD”), a telehealth company revolutionizing the delivery of healthcare to patients, is excited to announce that it has entered into a Binding Term Sheet (“Term Sheet”) to purchase a majority interest in Benchmark Systems Inc. (“Benchmark”), a leading cloud-based provider of fully integrated solutions that automate healthcare workflow processes including revenue management, practice management and electronic records management. CloudMD will purchase 87.5% of Benchmark from Benchmark’s parent company and global healthcare and AI leader, AntWorks Inc. (“AntWorks”). AntWorks will retain a 12.5% equity stake and remain a strategic partner for CloudMD both in the U.S. and globally.
Leveraged by 42 years of experience, Benchmark develops and delivers innovative cloud-based technology, integrated medical practice solutions including patient portals, personal health records, scheduling solutions, billing, messaging, eFax, computerized physician order entry (CPOE) and prescription scripting. Benchmark has a national U.S. network of 200 clients, 800 physicians, with 5.5 million patient charts across 35 states. On average, Benchmark processes approximately $2.5 million in charges (gross) each month.
The COVID-19 pandemic has exponentially accelerated transformational changes in how healthcare is accessed and delivered to patients while addressing the challenges of providing quality, cost effective and personalized patient centric care. Benchmark’s integrated solutions and its suite of medical software has been built alongside healthcare providers to create a more seamless, patient centric approach to healthcare, while solving profitability, productivity and quality issues, translating into improved health outcomes and financial performance.
As CloudMD continues to embark on its U.S. expansion, the acquisition of Benchmark positions CloudMD with a strong footprint across North America. The acquisition brings synergies through Benchmark’s 200 clinic ecosystem across over 35 states in the U.S. Benchmark’s suite of software solutions provides CloudMD with significant distribution channels into the U.S. and integration opportunities for its other virtual care solutions such as those offered through Cloud Practice, Snapclarity and iMD Health. With Benchmark’s experienced leadership team, and seamless workflow process, CloudMD will not only benefit from its extensive geographic reach and client commitment, but also the expertise of developing SAAS systems that support medical practitioners while complying with specific state requirements.
AntWorks is a global leader in artificial intelligence (AI) and intelligent automation, creating new possibilities with data through digitization, automation and enterprise intelligence. As the world’s first and only Integrated Automation Platform (IAP) powered by fractal science principles and pattern recognition that understands every data type, ANTstein™ digitizes every type of data type for a diverse range of industries. As a minority holder of Benchmark, AntWorks will continue to work with CloudMD providing expertise in global hyper automation and AI and provide access to cutting edge AI technologies.
The purchase of Benchmark will be immediately accretive to CloudMD and provides a number of opportunities for optimization to drive further revenue. In the fiscal year ending March 31, 2020, Benchmark generated approximately US$4.9 million in revenues with earnings before interest, taxes, depreciation and amortization (EBITDA) margins of 13%. Approximately 80% of revenue was SAAS based, recurring revenue.
Essam Hamza, CEO of CloudMD commented, “We believe that Benchmark will expedite our U.S. expansion efforts and enhance the quality, operations and scalability of our business. Benchmark is already well-established in the marketplace and their significant U.S. presence will help us navigate individual state requirements, while providing opportunities for existing software integration, cross selling and revenue optimization.” Amit Mathur, President of CloudMD added, “The current healthcare sector is prime for this automation technology which streamlines manual processes and makes them much more efficient. We look forward to working with AntWorks, a world leader in AI and automation, as we look to continue our expansion globally.”
Asheesh Mehra, Group CEO and Co-Founder of AntWorks says “We look forward to working with CloudMD to continue delivering on our shared commitment of providing holistic, patient centric care. Benchmark’s suite of revolutionary, AI driven software is already well established in the United States. Govind Sandhu, COO and Co-Founder of AntWorks adds, “With CloudMD’s healthcare expertise, proprietary telemedicine, mental health and patient education software, we are confident the synergies in this partnership will continue to expand the markets we serve and provide better, whole patient care to our combined network in North America and globally.”
Terms of Agreement
In consideration for the purchase of 87.5% of the outstanding securities of Benchmark, CloudMD has agreed to pay shareholders aggregate consideration of US$4,375,000 payable in cash.
The acquisition is subject to customary closing conditions, including the execution of a definitive acquisition agreement. The company anticipates a definitive agreement on or before October 15, 2020.
About AntWorks Healthcare Inc.
AntWorks™ is a global artificial intelligence and intelligent automation company, creating new possibilities with data through digitization, automation and enterprise intelligence. As the world’s first and only Integrated Automation Platform (IAP) powered by fractal science principles and pattern recognition that understands every data type, ANTstein™ digitizes every type of data for a diverse range of industries. Visit www.ant.works to empower your enterprise by automating simple and complex business processes end-to-end.
About CloudMD Software & Services
CloudMD is digitizing the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The Company offers SAAS based health technology solutions to medical clinics across Canada and has developed proprietary technology that delivers quality healthcare through the combination of connected primary care clinics, telemedicine, and artificial intelligence (AI). CloudMD currently provides service to a combined ecosystem of 376 clinics, over 3000 licensed practitioners and almost 3 million patient charts across its servers.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dr. Essam Hamza, MD”
Chief Executive Officer
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Forward Looking Statements
This news release contains forward-looking statements that are based on CloudMD’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans and its intended use of the proceeds of the Offering. Although CloudMD believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and CloudMD undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.