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Vitalhub Corp (2)
Symbol VHI
Shares Issued 42,919,616
Close 2022-04-22 C$ 2.95
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Vitalhub acquires Hicom for 8.7 million British pounds

2022-04-25 09:43 ET - News Release

Mr. Dan Matlow reports


Vitalhub Corp. has acquired Hicom Technology Ltd., a company incorporated and registered in England and Wales.

Vitalhub has acquired Hicom, through a share acquisition by its wholly owned subsidiary, Vitalhub U.K. Ltd., for a purchase price of 8.7 million British pounds. The purchase price paid at closing was composed of a cash payment of 7,825,000 and the issuance of 475,104 shares of Vitalhub to the shareholders of Hicom. The share consideration was calculated at a price of $3.016 per Vitalhub share and represents total value to the vendors of 875,000 British pounds. Fifty per cent of the share consideration shall be subject to contractual trading restrictions for a period of six months. In addition, the sellers could receive future contingent payments of up to 1.55 million based on Hicom achieving certain postclosing milestones.

For the 12-month period ended March 31, 2022, Hicom has estimated revenue of approximately 5.35 million British pounds, of which Hicom has identified 4.2 million British pounds to be recurring in nature with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately 1.05 million British pounds. Adjusted EBITDA, a non-IFRS (international financial reporting standards) measure, is defined as earnings before interest, taxation, depreciation, amortization, share-based compensation, business acquisition, restructuring and integration costs.

Dan Matlow, chief executive officer of Vitalhub, commented on the acquisition, stating: "We are extremely excited to welcome Hicom to the Vitalhub family. With this acquisition, Hicom brings the expansion of Vitalhub's existing customer base with the addition of 200 customers on an international basis and introduces six new solutions with potential for cross-selling into our existing base. Hicom's market-leading diabetes management systems, Diamond and Twinkle, are currently used by greater than 100 customers worldwide. We believe these solutions can be offered to an international customer base. The long-established expertise of the Hicom team is truly amazing and we expect their impact will be extremely synergistic in short order."

"We have been involved in Hicom since inception, and, over that time, we have developed fantastic relationships with our colleagues and our clients and delivered software that has made a real difference," said John Sanderson and Bruce Richards, the principals of Hicom. "The acquisition by Vitalhub is a new and exciting chapter in Hicom's story and provides a great opportunity for Hicom to accelerate its growth while remaining true to our core values, brand and people. With a shared vision, both Vitalhub and Hicom can maximize benefits from our products and market through a combination of talent, expertise and ambition, creating significant value for the investors, security and innovation for our clients, and career opportunities for our colleagues. We are both proud of what Hicom has achieved to date, and we are looking forward to seeing the Vitalhub group evolve and grow with the union of these two great organizations."

About Hicom Technology Ltd.

Founded in 2002, Hicom is a developer of software that automates health care and business processes across a diverse, 200-plus-strong client base. Hicom's solutions support a wide range of mission-critical health-care-centred processes, including: patient and clinical care; clinical research; work force management; recruitment and selection; learning and development; compliance management; and health and safety. Hicom is based in Woking, Surrey, United Kingdom, and supports key international clients through a branch in the United Arab Emirates.

About Vitalhub Corp.

Vitalhub provides technology to health and human services providers, including hospitals, regional health authorities, mental health, long-term care, home health, community and social services. Vitalhub solutions span the categories of electronic health record (EHR), case management, care co-ordination and optimization, and patient flow and operational visibility solutions.

The company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite and pursuing an aggressive M&A (merger and acquisition) plan. Currently, Vitalhub serves more than 400 clients across Canada, the United States, the United Kingdom, Australia, the Middle East and Europe.

Vitalhub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The Vitalhub team comprises more than 200 team members globally. The company is publicly traded on the Toronto Stock Exchange under the symbol VHI.

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