The acquisition of Medeo looks like a solid way for QHR (TSXV:QHR) to cross-sell to its client base of 10,000 Canadian physicians, says Haywood analyst Massimo Voci.
Yesterday, QHR announced it had entered into an agreement to acquire Vancouver-based virtual care technology company Medeo for $2.225-million in cash and a million shares, which will be escrowed for a year.
“The acquisition of Medeo helps advance QHR’s strategy to deliver a healthcare platform that spans the spectrum of clinics and devices, is deployed securely in the cloud and provides entry into new markets,” said CEO Al Hildebrandt. “QHR leads the Canadian marketplace with the country’s largest single EMR platform (Accuro EMR). We are confident that the addition of this mHealth (mobile healthcare) solution will strengthen our leadership position and enhance the physician workflow experiences with their patients.”
Voci says that while details are scarce, the pickup of Medeo is in keeping with QHR’s historic strategy of rolling up technology to deliver an integrated healthcare solution.
Medeo’s platform, explains Voci, allows doctors to connect with patents through secure cloud-based messaging and video conferencing. These “virtual visits” he says, are important for those unable to make regular appointments. He says this technology could be an entry point for Canadian physicians who aren’t currently on QHR’s EMR system.
In a research update to clients this morning, Voci maintained his “Buy” rating and $1.80 one-year target on QHR, implying a return of 57% at the time of publication.
Disclaimer: QHR is an annual sponsor of Cantech Letter and Editor Nick Waddell recently purchased shares of the company in the open market.