What You Should Know:
– HEALWELL AI (TSX: AIDX), a leader in AI-powered preventative healthcare, announced today it has agreed to acquire VeroSource Solutions Inc., a healthcare technology company focused on data solutions and digital healthcare platforms.
– The acquisition, valued at approximately $24.5M, is expected to significantly enhance HEALWELL’s capabilities in early disease detection and improve patient outcomes. By combining HEALWELL’s AI expertise with VeroSource’s data management and platform capabilities, the company is positioned to deliver a more comprehensive and effective healthcare technology solution.
VeroSource: A Leader in Data Integration and Insights
VeroSource offers a comprehensive cloud-based platform that seamlessly connects patients, care providers, and administrators to healthcare data. This platform integrates data from various sources, including electronic medical records (EMRs), pharmacies, and hospital information systems, allowing for valuable analysis and insights. VeroSource boasts a user base exceeding one million and boasts a strong track record of financial performance, with consistent revenue growth, high margins, and positive cash flow.
Strategic Benefits of the Acquisition
The acquisition offers significant strategic benefits for both companies:
- HEALWELL: Gains access to VeroSource’s data management, interoperability, and visualization expertise, along with a robust customer base in the public sector. This will allow HEALWELL to expand its AI-powered disease detection and patient identification capabilities and further its mission of early disease detection.
- VeroSource: VeroSource’s data solutions will benefit from HEALWELL’s powerful AI technology, enabling them to offer even more actionable insights to their clients. Additionally, VeroSource expands its reach through HEALWELL’s existing network of pharmaceutical customers.
Transaction Details
The acquisition will be a two-step process. HEALWELL will initially acquire 51% of VeroSource shares for approximately $12.5 million on July 1st, 2024. The remaining shares will be acquired on or around January 1st, 2025, for an additional $12 million. The purchase price will be a combination of cash and HEALWELL subordinate voting shares.
“We are thrilled to join forces with HEALWELL. Our combined expertise will accelerate our mission of empowering people and unlocking the value of healthcare data. With HEALWELL's support, we can expand our innovative digital health solutions more rapidly and effectively across Canada. We believe that we can help accelerate HEALWELL’s mission of early disease detection and providing more comprehensive, AI-driven healthcare solutions,” said Mark McAllister, CEO of VeroSource.