Well closes acquisition of Cycura's services division Well closes acquisition of Cycura's services division
2020-08-04 10:19 ET - News Release
Mr. Hamed Shahbazi reports
WELL HEALTH COMPLETES ACQUISITION OF CYCURA'S SERVICES DIVISION AND FORMS NEW CYBERSECURITY BUSINESS UNIT
Well Health Technologies Corp. has completed its previously announced acquisition of the services division of Cycura Inc., a private Ontario corporation. The purchase price was approximately $2.55M, paid entirely with cash on hand, and subject to certain holdbacks, adjustments, and time-based payments. In the past 12 months, Cycura Inc.'s Services Division generated revenues exceeding $1.7M with EBITDA margins of over 10%. In addition, WELL announces it is retaining the Cycura brand name and the formation of a new business unit called Cycura Data Protection Corp. ("Cycura"). This new business unit will be led by Iain Paterson, who was previously the Managing Director of Cycura Inc. and will be the CEO of Cycura going forward. Iain will be supported closely by Melinda Coultar who was the Director of Consulting at Cycura Inc., and will now see an elevated role serving as Vice President of Services.
"We are very excited to welcome the talented and experienced team from Cycura led by Iain and Melinda and look forward to their leadership of the new Cybersecurity business unit at WELL," said Hamed Shahbazi, Chairman and CEO of WELL. "We believe this business unit will be a key leader and consolidator in the Canadian cybersecurity space with the overarching goal of helping keep private data including highly sensitive health data safe and secure"
Cycura provides industry leading cybersecurity services including penetration and vulnerability testing, security focused code reviews, incident response services, cybersecurity training, cybersecurity M&A advisory and technical due diligence services, and more. Cycura will operate as a wholly owned subsidiary of WELL, providing cyber security protection and patient data privacy solutions across all of the Company's business units including WELL Health Clinic Network, WELL EMR Group and WELL Digital Health Apps. In addition, Cycura will continue to serve its existing customers across a broad array of industries, including healthcare clients focusing on mental health, telemedicine, health insurance and benefits.
"We are excited to join WELL who shares our belief in the importance of improving cybersecurity resilience in the healthcare and health tech sector," said Iain Paterson, CEO of Cycura. "While Cycura will continue to serve our valued customers across a broad array of industries, we believe this is a tremendous opportunity for us to increase our market share in healthcare, while operating as a standalone business within WELL."
Mr. Paterson is a highly skilled information security leader and practitioner with more than 15 years of experience in enterprise wide information technology. Previously, Mr. Paterson was the Information Security Officer for Trillium Health Partners, one of the largest hospitals in Canada and worked under the office of the CISO at eHealth Ontario, which houses the healthcare records of 13M Ontario citizens and acts as the main data share for the majority of Ontario's hospitals. Iain holds an MBA with a focus in Leadership and Innovation, and has industry CISSP, CISM and SABSA certifications.
All key employees of Cycura are being retained under Mr. Paterson and Ms. Coultar's leadership whose focus and energy will ensure that WELL not only continues to provide the high quality service that clients have come to expect from the Cycura brand, but also expand product and service offerings so that Cycura can tackle a greater number of challenges and be a more valuable vendor to its client base.
Cycura was initially founded and supported by a diverse and successful group of investors and operators represented by Mr. Eitan Popper. WELL extends its appreciation to this group for their hard work in consummating the transaction.
"This is a beneficial transaction for both WELL and Cycura Inc. The importance of cybersecurity for practically any industry has become an indisputable reality. I believe that WELL will be able to leverage the capabilities of the Services Division of Cycura Inc., while at the same time enabling and supporting the Division's growth", stated Eitan Popper, Chairman of Cycura Inc.
EBITDA is a Non-GAAP measure. Earnings before interest, tax, depreciation and amortization ("EBITDA") should not be construed as an alternative to net income/loss determined in accordance with IFRS. EBITDA does not have any standardized meanings under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company believes that EBITDA is a meaningful financial metric as it measures cash generated from operations.
As a condition of the transaction, Cycura Inc. will change its name while WELL will retain the Cycura name and brand and henceforth operate the Cycura Services Division as Cycura Data Protection Corp.