CloudMD Software & Services Inc. (DOC:TSX.V; DOCRF:OTCQB; 6PH:FSE) announced in a news release it will acquire Snapclarity Inc., a company with a digital mental health platform, for a total consideration of $3.35 million.
According to the agreement, CloudMD will pay Snapclarity up to CA$975,000 in cash and up to CA$2,375,000 in company shares at $0.70 apiece. Also, Snapclarity may earn up to $3.65 million upon CloudMD achieving certain performance milestones in 2021 and 2022.
With this acquisition, CloudMD becomes the only Canadian telehealth company with both primary care and mental health care components, a combination that addresses an emergent demand in healthcare, the firm noted.
In the news release, the Vancouver-based company's CEO, Dr. Essam Hamza, described the transaction as "a transformational addition to CloudMD as we continue to strengthen our suite of virtual care solutions and make it easier for Canadians to get help from home."
He noted the acquisition is timely as Covid-19 has had and continues to have negative impacts on people's mental health, due to isolation and other factors. According to existing data, as many as 56% of Canadians cited having experienced the trend personally.
Snapclarity's platform allows for healthcare providers to combine technology and a human touch to ultimately offer continuity of care to people with mild, moderate or chronic mental health issues. The platform assesses a person's risk of mental health disorders, from which a choice of appropriate care providers can be selected and a care plan can be tailored.
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