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Telemedicine provider CloudMD announced that it has agreed to acquire Oncidium, a healthcare provider to employers, for $68 million in cash and stock, along with a performance-based earnout of up to $32 million over a three-year period.
CloudMD chief executive Essam Hamza said the deal is "part of our overall product roadmap…as we continue building out our healthcare capabilities that now includes brick-and-mortar clinics, allied care, virtual care, a leading mental health solution, direct-to-consumer offerings and a robust and expansive Enterprise Health Solutions [EHS] division."
According to CloudMD, the acquisition aligns with its strategy of providing "whole-person care" and will fit into its connected healthcare platform. Oncidium, which has over 500 clients, offers services that focus on reducing occupational absence by delivering solutions that improve employee health and wellness. Its services are delivered virtually, on-demand and on-site through a network of over 1000 healthcare professionals, assessors and medical centres.
CloudMD indicated that Oncidium's solution will be a key component of its EHS division and provide complementary services to its employer base. With the takeover, CloudMD stated it expects to be able to provide a comprehensive EHS solution to a combined network of over 5500 clients and 5 million employees across North America. It also anticipates the transaction, which is slated to close in the first half of June, will be "instantly accretive."
Earlier this month, CloudMD said it completed the acquisition of Aspiria, a company that provides integrated employee and student assistance programmes for mental health and wellness.
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