Globe & Mail 11:04 AM EDT, 06/28/2021 (MT Newswires) -- CloudMD Software & Services Inc. (DOC.V) has closed the previously announced acquisition of Oncidium Inc., a healthcare providers to employers. Oncidium has built an ecosystem of over 500 clients servicing more than 2 million employees across Canada and more than 2,000 health care providers and medical assessors.
The acquisition of Oncidium enables CloudMD to evolve its ecosystem of healthcare services through occupational health, medical management and assessment services. The new capabilities will be a key component of the company's Enterprise Health Solutions (EHS) Division and provide Oncidium's clients with access to its new connected healthcare platform.
Since announcing the binding agreement, Oncidium acquired an organization specializing in independent medical evaluations and health-related services to employers and insurers. The strategic tuck-in is complementary to Oncidium and will provide immediate cost saving synergies through consolidation and integration, CloudMD said. The business generated $17 million in revenue with positive EBITDA for the 12-month period ending April 2021.
Concurrent with the closing of the acquisition, CloudMD has secured credit facilities of up to $62 million with Oncidium entering into a senior credit agreement with the Bank of Montreal. BMO will be providing a committed senior term loan of up to $25 million to fund a portion of the initial cash consideration of the transaction with Oncidium, an uncommitted senior term loan structured to fund $24 million of any performance-based earnouts over a 3-year period at the time of payment., and an uncommitted accordion facility for future acquisitions in the amounts of $3 million and $10 million, respectively.
The credit facilities will have a term of three years and are secured by a first ranking security interest in all the present and future assets and subsidiaries of Oncidium, including a guarantee from CloudMD.
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