Premier Health Group to Acquire Telemedicine Pioneer Livecare
Premier Health Group (CSE: PHGI) this morning announced a binding term sheet to acquire Livecare, a Canadian telehealth firm that has provided over 27,000 telemedicine visits. Total consideration for the acquisition is pegged at $3.0 million, payable in a combination of common shares and debt.
The acquisition will see Premier Health add Livecare’s products to its current repertoire of technology offerings to medical clinics and patients. Livecare’s telemedicine technology is currently used to connect doctors and health care providers via encrypted face to face video and messaging. The firm also has software, named kindredPHR, that is used for storing, managing, and sharing personalized health records. Combined, Livecare’s technology is currently in use by over 500 independent health practitioner accounts that are currently active.
Livecare is unique from other telemedicine offerings, in that it has established a suite of partners across the country. The partnerships allow patients to have access to bluetooth enabled stethoscopes and otoscopes for their telemedicine visits, enabling the remote visits to be more in-depth than many competing telemedicine providers. The result is a higher quality visit, and a higher quality of care for the patient.
Total consideration for Livecare will be $3.0 million, which is in the form of debt assumption and common shares. $1.8 million will be payable in common shares at a price per share of $0.40. The remaining amount will be paid by assuming debt, up to $1.2 million. In the event that the debt is less than $1.2 million, the remainder will be paid via common shares.
Livecare has been a pioneer in telemedicine and their knowledge and relationships will be invaluable to our plans moving forward. A key aspect of integration includes their workflow for video consults, specializing in real time assessments with devices like bluetooth enabled stethoscopes and otoscopes for physical examination of patients remotely. Having tested the devices in my own practice, I was impressed with the quality of care I was able to provide from a distance, whether it was listening to a heartbeat or performing an ear exam.
Dr. Essam Hamza, CEO of Premier Health
The closing of the agreement is subject to the execution of a definitive agreement.
Premier Health Group closed yesterdays session at $0.40 on the Canadian Securities Exchange.
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