VitalHub's Strategic Acquisition of Novari Health Inc.
VitalHub Corp. (TSX:VHI) (OTCQX:VHIBF) is excited to announce its recent acquisition of Novari Health Inc., a prominent healthcare software provider specializing in patient flow solutions. This significant move positions VitalHub to strengthen its portfolio and expand its reach in the healthcare sector.
Details of the Transaction
The acquisition of Novari was valued at a total of $43.6 million, which includes up-front payments and performance-based earnings. At the time of closing, VitalHub paid $35.8 million in cash and issued 733,726 common shares. Additionally, there is a potential earnout of $5.0 million based on Novari's performance over the next two years.
Meet Novari Health
Based in Kingston, Ontario, Novari has established itself as a key player over its 20-year history. The company's suite of integrated software modules focuses on enhancing referral management, surgical waitlist management, central intake, and care coordination services for healthcare providers. By utilizing Novari’s cloud-based solutions, healthcare systems can significantly reduce wait times and ensure that patients receive timely and appropriate care.
As of June 30, 2025, Novari reported Annual Recurring Revenue (ARR) of approximately $12.0 million, with a trajectory towards breakeven in Adjusted EBITDA prior to the acquisition.
Strategic Growth Opportunities
In an era where wait times and administrative complexities in healthcare are a growing concern, the referral management market is attracting investment from governments worldwide. The integration of Novari’s technology with VitalHub’s existing referral management platform is anticipated to enhance the company’s standing in the Canadian healthcare sector.
VitalHub plans to leverage its international presence to expand Novari’s solutions globally, particularly targeting markets in the UK. This collaborative go-to-market strategy is expected to create enhanced value for clients and solidify VitalHub's leadership position in the referral management space.
Leadership Insights
Dan Matlow, the CEO of VitalHub, expressed enthusiasm, saying, "We have observed Novari’s success in Canada for many years, and we are thrilled to welcome them into the VitalHub family. This acquisition reinforces our leadership role in the patient flow market and aligns with our long-term vision for growth in the digitalization of healthcare."
John Sinclair, CPHIMS, President and CEO of Novari, shares in this excitement, stating, "Joining VitalHub allows us to accelerate our growth while continuing to offer exceptional software solutions and services to our Canadian clients and beyond. We look forward to leveraging VitalHub’s established client relationships across borders."
About Novari
Novari Health is renowned for its award-winning software that facilitates referral management, central intake, and waitlist management. Their innovative solutions are designed to improve healthcare access and operational effectiveness. By adhering to standards such as HL7, FHIR, and DICOM, Novari’s tools seamlessly integrate with various healthcare systems including those used for electronic health records and patient management.
About VitalHub
VitalHub is poised to empower healthcare providers globally with its comprehensive suite of software solutions that encompass electronic health records, operational intelligence, and workforce automation. Serving more than 1,000 clients across Canada, the UK, and beyond, VitalHub is committed to growth through both organic avenues and strategic mergers and acquisitions.
With over 500 employees and an innovative lab in Sri Lanka, VitalHub is continually enhancing its offerings to meet the evolving needs of the healthcare industry.
Frequently Asked Questions
What motivated VitalHub to acquire Novari Health Inc.?
The acquisition aims to enhance VitalHub's portfolio of patient flow solutions and capitalize on Novari’s expertise in referral management, thus addressing growing demands in the healthcare sector.
How much was the acquisition worth?
The acquisition of Novari was valued at $43.6 million, which includes both up-front payments and potential performance-based incentives.
What technologies does Novari provide?
Novari offers integrated software modules for referral management, surgical waitlist management, central intake, and overall care coordination, all aimed at improving patient access and operational efficiency.
Where is Novari Health located?
Novari Health is based in Kingston, Ontario, and has a growing presence in international markets including Australia, New Zealand, and the UK.
What are VitalHub's future growth plans following this acquisition?
VitalHub plans to leverage its international footprint to expand Novari’s reach, especially in the UK, enhancing its solutions and establishing its leadership in the referral management market.
