Canadian software company VitalHub has agreed to acquire MedCurrent, a supplier of clinical decision support solutions, for up to C$34m ($24.55m).
The acquisition will be carried out through a court-approved plan of arrangement as specified in the provisions of the Business Corporations Act (Ontario).
It includes a C$12m cash payment on closing and up to C$21.87m in earn-out consideration over the next 36 months.
The payment on closing is subject to certain customary working capital adjustments as well as similar closing adjustments, while the earn-out amount is based on annual performance.
MedCurrent’s directors, officers and certain other shareholders, representing around 79.81% of the company's common shares, have agreed to support the transaction.
The deal is expected to close in September this year subject to shareholder, court and regulatory approvals and third-party consents.
Once it has closed, MedCurrent will operate as a wholly owned subsidiary of VitalHub.
VitalHub CEO Dan Matlow said: “By integrating MedCurrent’s solutions with our existing offerings, we believe that we can significantly reduce unnecessary tests and procedures, ultimately lowering costs and improving patient care.
“We are excited about potential to expand MedCurrent’s reach internationally and enhance our collective impact on global healthcare systems.”
Founded by physicians, MedCurrent specialises in improving care quality and managing health system costs with its OrderWise solution.
OrderWise uses evidence-based guidelines and AI to enhance clinical decision-making in real-time, primarily focusing on medical imaging test appropriateness.
It is currently used in more than 80 customer installations across Canada, Australia, the UK and the US.
MedCurrent founder and CEO Steve Herman said: “We are thrilled to join forces with VitalHub, a company that shares our commitment to improving healthcare through innovation.
“This partnership will allow us to accelerate the development and deployment of our solutions, reaching more healthcare providers and patients worldwide.”
