Toronto-based healthtech startup Adracare is set to be acquired by WELL Health Technologies in a $4.75 Million CAD deal.
Adracare was created in late-2020 by the team behind OrbCare, another healthtech company that went bankrupt in 2019. It acquired a portion of Orbcare’s assets out of bankruptcy.
Founded in 2019, Adracare provides an all-in-one clinical management solution to business clients. Its clients operate in the areas of mental health, physiotherapy, nutrition, medicinal cannabis, audiology and speech pathology, and occupational health. Medical professionals utilize management software to connect with patients virtually.
The acquisition of Adracare succeeds a long sequence of events that started in May of 2019 when OrbCare’s investor iGan Partners realized Orbcare had misrepresented its revenue and financials to investors, and the company then filed for bankruptcy. After not being able to find a different buyer as part of bankruptcy procedures, Orbcare’s assets defaulted to iGan and were bought, in part, by Adracare.
Adracare has customers in 5 countries, including Canada, the United States, the United Kingdom, Australia and New Zealand, and works with over 6,800 healthcare providers. In the preceding quarter, Adracare claims to have recorded more than 93,000 appointments booked on its platform, providing healthcare to more than 179,000 patients.
It seems that Adracare will linger to operate independently following the purchase, with WELL Health Technologies reporting that Adracare is likely to be operated by its current CEO, Olivier Giner.
Hamed Shahbazi, Chairman and CEO of WELL Health said, his entire team is ecstatic at the prospect of welcoming Olivier Giner, CEO of Adracare, and the rest of the brilliant Adracare team to the WELL Health family. He added that Adracare is a complementary solution to his company’s existing EMR and telehealth software revenue streams and widens its technology solutions into markets that it currently doesn’t cater to, such as mental health and cannabis therapy.
WELL Health also noted that it expects Adracare to generate yearly revenue of approximately $2 million CAD, based on present customer relationships and new contracts signed as projected over the upcoming 6 months. The company also stated its expectation that Adracare will be profitable on an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) basis, though it did not give a timeline.
WELL Health Technologies is traded on the Toronto Stock Exchange and either buys or takes equity stakes in digital health, billing, and cybersecurity solutions. The company acquired Kai Innovations for $10.75 million CAD, invested $5.94 million CAD in Insig, and funded Phelix.ai with a $1 million CAD in a seed round. In December 2020, WELL acquired Markham-based cybersecurity startup Source 44.
Olivier Giner said he believes Adracare’s platform will be very synergistic with WELL’s growing EMR, telehealth and similar health businesses. Furthermore, he said that his team is delighted to work within the WELL ecosystem to develop a strong leadership position in the connected health practice management space for health and wellness providers.
The finalization of the transaction is subject to certain terms and conditions and is expected to be completed by early Q1 2021.
We try our best to fact check and bring the best, well-researched and non-plagiarized content to you. Please let us know
-if there are any discrepancies in any of our published stories,
-how we can improve,
-what stories you would like us to cover and what information you are looking for, in the comments section below or through our contact form! We look forward to your feedback and thank you for stopping by!
Next Story
[…] Next Story […]