Vancouver, British Columbia-based Premier Health Group Inc. signed a letter of intent to acquire medical software company Cloud Practice for up to C$5 million.
Cloud Practice develops cloud-based electronic medical records software applications for physicians in Canada. Among the company's products include Juno EMR, which is used for electronic medical records, and ClinicAid, a medical billing software.
Under the deal, Premier will pay a total consideration of up to C$5 million. The consideration includes C$500,000 in cash upon signing the binding letter of intent, C$500,000 in cash upon closing, C$500,000 in cash 90 days after closing, C$500,000 in cash within 6 months of the letter of intent subject to certain milestones related to the integration of Juno EMR and a total of C$3 million in Premier common shares.
The acquisition will integrate telemedicine, online booking and other services within the company's electronic medical record system, said Premier Health CEO Essam Hamza.
The deal is subject to closing conditions, including a definitive acquisition agreement and Canadian Securities Exchange approval.
The transaction is expected to close on or about the end of December.