October 6, 2022
Mike Wessinger, government chairman and co-founder of PointClickCare.Tijana Martin/The Globe and Mail One among Canada’s

Mike Wessinger, government chairman and co-founder of PointClickCare.Tijana Martin/The Globe and Mail

One among Canada’s most respected non-public know-how firms, well being care software program supplier PointClickCare Applied sciences Inc., is shopping for U.S.-based Audacious Inquiry for greater than US$250-million, the most recent in a string of sizeable overseas purchases by quickly increasing digital enterprises based mostly right here.

The acquisition, PointClickCare’s ninth, will assist the Mississauga firm proceed to broaden its choices past its core enterprise of offering internet-based health-records software program to 27,000 nursing houses, retirement services and home-health businesses in the USA.

The deal builds on a technique the corporate put in place with its December acquisition of Utah-based Collective Medical for greater than US$500-million. That deal, the most important in PointClickCare’s historical past, differed from its previous purchases of competing digital medical data suppliers. It enabled PointClickCare to start out filling gaps in caregiving between acute-care settings resembling hospitals and post-acute centres like those it was already serving. Collective’s platform tracks tens of hundreds of thousands of sufferers throughout services, care organizations and nationwide well being plans throughout America.

A month after that acquisition, the corporate’s largest investor, Dragoneer Funding Group and fellow U.S. non-public fairness agency Hellman & Friedman LLC purchased out most of earlier shareholder JMI Fairness’s stake in a deal valuing PointClickCare at US$4-billion.

With Audacious, PointClickCare is shopping for a fast-growing firm whose software program, like Collective’s, can be used to gather and alternate knowledge between services that switch sufferers so “when somebody is discharged from hospital to residence or post-acute facility, we need to be certain that the physician is aware of that’s occurring and that they’ve the insights they want” to comply with up with sufferers, Scott Afzal, president of Audacious, stated in an interview.

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He stated his firm generates between US$30-million and US$40-million in annual income, operates in 16 U.S. states and has dealt with data for 70 million sufferers.

Baltimore, Md.-based Audacious was based in 2004 and acquired no exterior funding till 2017, when it raised cash from native enterprise capital agency ABS Capital Companions. Three years later Bloomington, Minn.-based TT Capital Companions led one other funding into Audacious. It has 169 workers, who will be a part of 27-year-old PointClickCare, bringing the Canadian firm’s headcount to 2,000 individuals.

PointClickCare CEO and co-founder Dave Wessinger – who took over final 12 months from older brother Mike, now government chairman – stated in an interview the Audacious acquisition “is absolutely step two in a course of” following the Collective deal. The 2 acquisitions will construct out his firm’s skill to offer “continuity of care” to sufferers and “add excessive worth” to the community of two,700 hospitals, 2,000 ambulatory and greater than 22,000 long-term and post-acute-care services PointClickCare serves in about 30 U.S. states. The corporate now generates about US$500-million in annual income and is rising by about 20 per cent per 12 months, factoring out the impression of acquisitions, Mr. Wessinger stated.

He added the offers come amid “pretty fast” modifications within the U.S. well being care software program house lately which have seen software program distributors firms construct out their functionality, largely via acquisitions, to offer extra built-in care choices for sufferers. PointClickCare’s rivals embrace NetSmart Applied sciences, Inc. WellSky and Bamboo Well being.

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“This house has developed pretty quickly lately and it’s type of a race to construct that community and make the connections to get to the subsequent layer,” Mr. Wessinger stated. He added PointClickCare continues to search for different acquisitions. ”The one most vital factor is to develop this space of the enterprise,” he stated. “Something that helps us try this we’ll have a look at in a critical manner.”

PointClickCare is one in all many Canadian know-how firms which have gone on a worldwide shopping for binge through the pandemic, flush with money from non-public backers or public choices. Different latest acquirers of overseas firms embrace Eddyfi NDT, Dye & Durham, Lightspeed Commerce, Coveo Options, SemiosBio Applied sciences, Clio, FreshBooks, Magnet Forensics, Intelerad Medical Techniques and Vendasta Applied sciences. Information from Refinitiv exhibits tech firms accounted for greater than 21 per cent of overseas acquisitions by Canadian companies, the sector’s highest share since 2000.

PointClickCare is paying for Audacious with a mixture of money available, debt and fairness. The deal is topic to regulatory approvals and different closing situations.

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