CloudMD To Acquire MindBeacon For $116 Million In Cash And Shares
CloudMD Software & Services (TSXV: DOC) appears to be taking a page out of Well Health’s playbook, announcing this morning it will be acquiring a publicly traded firm as it looks to continue to backfill its valuation. The firm has reached a definitive agreement to acquire MindBeacon Holdings (TSX: MBCN).
MindBeacon, a digital mental healthcare platform, is set to be acquired by CloudMD for a total figure of $116 million. Consideration is to consist of cash and shares, with shareholders to receive $1.22 in cash per share held, as well as 2.285 common shares of CloudMD. Collectively, consideration is said to have a value of $4.78 per share, representing a premium of 49% to the volume weighted average price of MindBeacon.
The transaction is claimed to be synergistic, resulting in a clinical health platform that is expected to be a fully integrated health offering that has “significant cross selling opportunities.” Immediate synergies of $2.0 million have reportedly been identified, with the company expecting a consolidated revenue run rate of $185 million upon closing.
The arrangement remains subject to shareholder approval.
CloudMD last traded at $1.60 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
