CloudMD Software & Services Inc. (DOC:TSX.V; DOCRF:OTCQB; 6PH:FSE) agreed to acquire a 51% interest in Ontario-based West Mississauga Medical Ltd. for a total consideration of CA$200,000 (CA$140,000 in cash and CA$60,000 in company shares), it announced in a news release.
"The acquisition is part of CloudMD's national growth strategy which includes having well-established brick-and-mortar clinic partners in major provinces," the release noted. "These clinics ultimately provide a strong, centralized patient base and footprint across the country."
West Mississauga Medical is a 16-year-old family and specialty medicine clinic composed of eight primary care physicians and four specialists, who serve more than 100,000 patients. In 2019 the practice generated revenue of $1.8 million and EBITDA margins exceeding 11%, thus, making the acquisition immediately accretive to CloudMD, the company noted.
The company stated that the clinic's doctors will immediately start servicing CloudMD's registered users and patients in Ontario, and CloudMD will integrate West Mississauga Medical into its electronic medical records platform.
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