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Wednesday 16 September 2020

Canada's Vitalhub acquires again in UK health

Vitalhub logoCanadian healthcare technology company Vitalhub has increased its UK presence further with the acquisition of SME Transforming Systems for c£6m. The move follows the purchase of another UK healthcare SME, Intouch with Health, last month and is Vitalhub’s fourth acquisition in the patient flow and operational visibility space globally.   

Toronto-based Vitalhub isn’t a well-known name in digital healthcare yet. With solutions spanning electronic health records, case management, care coordination and patient flow and operational visibility, our research suggests that before the latest acquisitions it turned over less than £10m annually with some 200 clients globally. The group has ambitious growth plans though, including an aggressive M&A strategy of which the Transforming Systems and Intouch acquisitions are a part.

Vitalhub is paying approximately £6m for Transforming Systems, comprising £2.7m in shares and £3.3m in cash. In its last fiscal year to end July 2020, Transforming Systems turned over £2.2m (+13% on the prior year) but made an operating loss of £770k. Note however that Transforming Systems’ cash on hand after the acquisition is expected to be c£1m with no debt. 

Transforming Systems is a London-based SME known for its real-time data sharing system, SHREWD (Single Health Resilience Early Warning Database), which was developed with the NHS in Medway in response to the 2009 swine flu pandemic. The platform, which according to Vitalhub is currently used by ‘27% of the NHS’, takes information from all health and care sources – either via automatic feeds or spreadsheets – and presents it in a consolidated way via a dashboard. As you might imagine, this has proven invaluable during the current pandemic and we can see why Vitalhub believes there is an opportunity to expand the solution both within the NHS and globally.

The acquisition also complements the Intouch business, which was acquired less than a month ago for £3.85m (mostly in cash). Founded in 1999, Intouch’s patient flow management solutions are used by some 53 NHS Trusts and deployed internationally. Given its aggressive M&A strategy, we would not be at all surprised to see Vitalhub make further acquisitions in the UK in the coming months.

Posted by: Tola Sargeant

Tags: acquisition   software   healthcare  

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