Toronto, Ontario–(Newsfile Corp. – April 25, 2022) – VITALHUB CORP. (TSX: VHI) (the “Company” or “VitalHub”) is pleased to announce today that it has acquired (the “Acquisition”) Hicom Technology Limited. (“Hicom”), a company incorporated and registered in England and Wales.
VitalHub has acquired Hicom, via a share acquisition by its wholly-owned subsidiary, VitalHub UK Limited, for a purchase price of £8,700,000. The purchase price paid at closing was composed of a cash payment of £7,825,000 and the issuance of 475,104 shares of VitalHub to the shareholders of Hicom (the “Share Consideration”). The Share Consideration was calculated at a price of $3.016 per VitalHub share and represents total value to the vendors of £875,000. Fifty percent (50%) of the Share Consideration shall be subject to contractual trading restrictions for a period of six (6) months. In addition, the Sellers could receive future contingent payments of up to £1,550,000 based on Hicom achieving certain post-closing milestones.
For the 12-month period ending March 31, 2022, Hicom has estimated revenue of approximately £5.35M, of which Hicom has identified £4.2M to be recurring in nature with Adjusted EBITDA of approximately £1.05M. Adjusted EBITDA, a non-IFRS measure, is defined as earnings before interest, taxation, depreciation, amortization, share based compensation, business acquisition, restructuring and integration costs.
Dan Matlow, VitalHub CEO, commented on the Acquisition stating, “We are extremely excited to welcome Hicom to the VitalHub family. With this acquisition, Hicom brings the expansion of VitalHub’s existing customer base with the addition of 200 customers on an international basis and introduces six new solutions with potential for cross selling into our existing base. Hicom’s market-leading diabetes management systems, Diamond and Twinkle, are currently used by greater than 100 customers worldwide. We believe these solutions can be offered to an international customer base. The long-established expertise of the HICOM team is truly amazing and we expect their impact will be extremely synergistic in short order.”
“We have been involved in Hicom since inception and over that time we have developed fantastic relationships with our colleagues and our clients, and delivered software that has made a real difference” said John Sanderson and Bruce Richards, the principals of Hicom. “The acquisition by VitalHub is a new and exciting chapter in Hicom’s story and provides a great opportunity for Hicom to accelerate its growth, while remaining true to our core values, brand and people. With a shared vision, both VitalHub and Hicom can maximise benefits from our products and market through a combination of talent, expertise and ambition, creating significant value for the investors, security and innovation for our clients, and career opportunities for our colleagues. We are both proud of what Hicom has achieved to date and we are looking forward to seeing the…
