TORONTO, June 19, 2025 (GLOBE NEWSWIRE) -- Vitalhub Corp. (TSX: VHI) (OTCQX: VHIBF) (the "Company" or "VitalHub") announced that it has completed the cash acquisition of Induction Healthcare Group PLC ("Induction") by way of a court-sanctioned scheme of arrangement (the "Acquisition") under Part 26 of the Companies Act 2006.
For full details related to the Acquisition, please see the circular related to the scheme of arrangement published by Induction on April 17, 2025 and the press release published by VitalHub on April 10, 2025.
Induction delivers a suite of software solutions that transforms care delivery and the patient journey through hospitals. Induction's primary products are Zesty and Attend Anywhere. Zesty is a patient engagement platform that transforms interactions between patients and care teams. Attend Anywhere is a platform that makes it simple, safe, and secure for healthcare organisations to offer video consultations as a normal part of day-to-day operations.
VitalHub acquired Induction for £0.10 in cash for each Induction share, valuing Induction at approximately £9.7 million. For the most recently reported six-month period ended September 30, 2024, Induction generated revenues of £5.4 million, gross margin of 78.2%, and an adjusted EBITDA(1) loss of £0.9 million. Zesty generated revenues of £2.0 million and Attend Anywhere generated revenues of £3.2 million (£0.2 million of revenues from discontinued operations). As at the Acquisition closing date, Induction's subscription-based Zesty solution had Annual Recurring Revenue(2) of £2.2 million and Attend Anywhere had virtual care recurring revenue of £4.6 million.
"We see the Induction product set, in particular the Zesty platform, as highly complementary to our current suite of solutions," said Dan Matlow, CEO of VitalHub. "We believe our expanded end-to-end offering will enhance the value to our healthcare partners, improving the end-user experience and patient outcomes."
About VitalHub
VitalHub is a leading software company dedicated to empowering health and human services providers globally. VitalHub's comprehensive product suite includes electronic health records, operational intelligence, and workforce automation solutions that serve over 1,000 clients across the UK, Canada, and other geographies. The Company has a robust two-pronged growth strategy, targeting organic opportunities within its product suite and pursuing an aggressive M&A plan. VitalHub is headquartered in Toronto with over 500 employees globally, across key regions and the VitalHub Innovations Lab in Sri Lanka. For more information about VitalHub (TSX: VHI) (OTCQX: VHIBF), please visit www.vitalhub.com and connect with us on LinkedIn.
About Induction
Induction delivers a suite of software solutions that transforms care delivery and the patient journey through hospital. Induction's system-wide applications help healthcare providers and administrators to deliver care at any stage remotely as well as face-to-face - giving the communities they serve greater flexibility, control and ease of access. Purpose-built for integration with leading Electronic Medical Record (EMR) platforms, its products offer immediate stand-alone value that becomes even greater when integrated with pre-existing systems.
Contact Information
Christian Sgro, CPA, CA, CFA
Head of IR and M&A Specialist
(365) 363-6433
christian.sgro@vitalhub.com
Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com
Cautionary Statement
This news release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer's business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer's prospective business and financial performance, and its financial position.
The forward-looking information in this news release includes discussion about the terms of the Acquisition, and about the business of Induction and its potential synergies with the Company and the potential for the international application of Induction's solutions. VitalHub has made certain material assumptions in making these forward looking statements, including but not limited to prevailing market conditions, general business, economic, competitive, political and social uncertainties, and the ability of VitalHub and Induction to execute and achieve their respective and combined business objectives. There can be no assurances that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include, but are not limited to, the assumptions made with respect to such forward looking information, adverse market conditions, currency exchange fluctuations, the inability of VitalHub and Induction to successfully integrate operations, reliance on key and qualified personnel, and regulatory and other risks associated with the medical and technology industries in general. The foregoing list of material risk factors and assumptions is not exhaustive.
Non-IFRS Financial Measures
The Company has included both IFRS and certain non-IFRS financial measures to describe performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded, from the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company, and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.
These non-IFRS financial measures are not standardized financial measures under IFRS, and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures provide transparent and useful supplemental information to help investors evaluate financial performance, financial condition, and liquidity using the same measures as management. These non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.
(1) Adjusted EBITDA
The non-IFRS financial measure "Adjusted EBITDA" is defined as operating Loss from continuing operations before amortisation and non-cash foreign exchange adjustment, restructuring and non-recurring items. Adjusted EBITDA is used to assess normalized cash generated on a consolidated basis. Adjusted EBITDA is also a performance measure that may be used by investors to analyze the cash generated by Induction. Adjusted EBITDA should not be interpreted as an alternative to net income (loss) and cash flows from operations as determined in accordance with IFRS or as measure of liquidity.
(2) Annual Recurring Revenue
The non-IFRS financial measure "Annual Recurring Revenue" is defined as the recurring annual revenue based on yearly subscriptions of renewable software licence fees and maintenance services.
