The acquisition will accelerate Carebook’s entry into the insurtech market
Canadian digital health company Carebook Technologies has signed a letter of intent (LOI) to acquire Health Care Services International (doing business as Novus Health), which provides health technology products to the insurance industry.
Based in Canada, Novus Health caters to insurers, financial institutions, and employers with health navigation programmes and integrated health and wellness management solutions.
Carebook will acquire the company in a cash-cum-stock deal worth up to C$15m ($11.49m). The consideration includes a maximum of C$4m ($3.06m) in the form of a 2021 revenue-based performance earn-out.
The digital health company said that the acquisition will speed up its entry into the C$8bn ($6.13bn) insurance technology market.
Currently, Carebook provides digital health and virtual care solutions for insurers, pharmacies, employers, and governments.
Carebook CEO Pascale Audette said: “Novus Health has proven themselves to be a leader in the digital health space and together, we will be positioned for significant growth on a global scale providing platforms to the insurance and employer markets.
“The ability to leverage Novus Health’s platform, along with its deep AI and mobile enabled technology assets in key markets that the company serves, makes this acquisition highly strategic for us.”
Novus Health’s lead product is a cloud-based health and wellness portal that its insurance and financial institution customers offer to their clients or employees. The customisable, white-labelled portal enables users to bring together all their health resources in a single place.
The portal is also said to give insight into user behaviour and trends with the help of detailed reporting and analytics. Besides, the portal gives scope for cross-selling by giving customers the ability to push product and service suggestions on the basis of usage behaviour.
Presently, Novus Health is claimed to have over two million platform users with 95% recurring revenue.
Novus Health founder and chairman Robin Ingle said: “Novus Health has become a leader with our unique, customizable, cloud-based portal, and we have built a very sizeable international customer base in key industries. The opportunity to take our strengths and successes to the next level by being a part of Carebook is extremely exciting for us.
“We definitely share a common vision with Carebook and we know that the combination will result in greater opportunities to capture a larger share of the growing global market in digital healthcare.”
The deal, which is subject to customary conditions, and pursuant to relevant securities laws, is expected to be completed in February 2021.