VitalHub Expands Its Reach with Novari Health Acquisition
VitalHub Announces Acquisition of Novari Health Inc.
VitalHub Corp. (TSX: VHI) (OTCQX: VHIBF) is excited to report its strategic acquisition of Novari Health Inc., a distinguished software provider specializing in patient flow solutions. This acquisition is a significant step forward for VitalHub, allowing it to strengthen its healthcare offerings and expand its market presence.
Transaction Details
The acquisition of Novari was completed for a total upfront payment of $43.6 million, which includes a cash payment of $35.8 million and the issuance of 733,726 common shares of VitalHub. Additionally, there is potential for performance-based consideration of up to $5 million over the subsequent two years, depending on Novari's performance metrics post-acquisition.
Overview of Novari
Novari Health, headquartered in Kingston, Ontario, boasts over two decades of experience in enhancing patients' access to healthcare services. Their platform is recognized for providing seamless integrations of software modules, including referral management, surgical wait list management, and care coordination. These capabilities are vital for health systems and hospitals aiming to reduce wait times and optimize treatment paths for patients.
Financial Performance
As of the latest reporting date, Novari has established an Annual Recurring Revenue (ARR) of approximately $12 million. The company had established itself near breakeven on Adjusted EBITDA before being acquired, indicating an efficient business model and solid revenue stream.
Strategic Opportunity for Growth
The referral management sector is an essential area of focus for healthcare systems due to increasing demands for efficiency and decreased wait times. The integration of Novari's services with VitalHub's existing solutions is anticipated to bolster their leading position in this market, especially in Canada.
Expansion Potential in International Markets
VitalHub plans to leverage its global presence to enhance Novari's operations, especially within the UK market. A united marketing approach and combined product offerings are expected to enhance client value and firmly establish VitalHub as a key player in global referral management.
Leadership Insights
Dan Matlow, CEO of VitalHub, expressed enthusiasm regarding the acquisition: "We have watched the success of Novari in the Canadian landscape for over a decade and are honored to welcome their team to our platform. Our position in the Canadian patient flow market is fortified, aligning perfectly with our long-term growth vision in digital healthcare."
Commitment to Client Success
John Sinclair, President and CEO of Novari, emphasized the bright future under VitalHub's umbrella: "As a part of VitalHub, we are dedicated to accelerating our growth and continuing to deliver exemplary software and professional services to our clients, both in Canada and internationally. Our combined expertise will undoubtedly enhance the services we offer.”
About Novari Health
Novari Health is recognized for its award-winning solutions that significantly improve care access and operational efficiency. Their technologies rely on recognized international standards and are designed to integrate seamlessly with various healthcare systems. Headquartered in Canada, with a strong presence in Australia, New Zealand, and the UK, Novari is one of the rapidly growing digital health solution providers, committed to improving healthcare delivery through technology.
About VitalHub
VitalHub is a pioneering software company that empowers health and human services providers around the globe. Their extensive product suite includes solutions such as electronic health records and operational intelligence that support over 1,000 clients worldwide. With a dual approach to growth that includes both organic opportunities and an assertive M&A strategy, VitalHub stands poised for significant expansion in the healthcare technology sector.
Contact Information
Christian Sgro
Head of IR and M&A Specialist
(365) 363-6433
christian.sgro@vitalhub.com
Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com
Frequently Asked Questions
What is VitalHub Corp known for?
VitalHub Corp is recognized for providing innovative software solutions that enhance health and human services globally.
What does the acquisition of Novari entail?
VitalHub acquired Novari for $43.6 million, aimed at enhancing its suite of healthcare software solutions.
How does Novari improve healthcare services?
Novari's software modules streamline processes like referral management and care coordination, improving patient access to healthcare.
What are the future plans for VitalHub following the acquisition?
VitalHub aims to expand Novari's operations internationally while strengthening its position in the Canadian market.
Who are the key leaders involved in this acquisition?
Dan Matlow serves as CEO of VitalHub, and John Sinclair is the President and CEO of Novari.
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