Ottawa-based TUC IT Managed Solutions announced Monday it has merged with CareWorx, a technology solutions provider focusing on the senior care industry.
TUC chief executive Mark Scott, who will be CEO of the merged company, said the acquisition is the “next level” of a strategic partnership the companies formed in November 2014.
“None of us are getting any younger. That’s for sure,” he said. “(Senior care) is a market that’s grown exponentially over the last decade and set to even increase more going forward the next 10 to 20 years.”
The merged company will eventually operate under the CareWorx banner with separate divisions for managed services and senior care. All existing clients of both companies will continue to get their usual services, TUC said.
While the senior care division will “aim to vastly improve technology and IT support options for senior care facilities,” the managed services division will focus on “expansion in the midmarket and healthcare through a channel-first strategy,” it said.
CareWorx is a strategic partner of PointClickCare, which Mr. Scott called the “Microsoft of senior care for electronic health records software.” A majority of senior care facilities that use electronic records in North America use PointClickCare software, he said.
CareWorx is the company that integrates the PointClickCare software, making sure it works in the facility. Since November 2014, TUC has supplied the managed services support for those facilities, handling anything from difficulties with PointClickCare applications to general problems accessing the Internet.
The acquisition now “provides the complete technology stack for somebody that’s running a long-term care facility,” Mr. Scott said.
Former CareWorx CEO Mark Tomzak will now be president of the merged company, where he will focus on the senior care division.
“Our goal is to help senior care facilities strategically plan what technology best meets their needs, help them get the most out of it and ensure they have the support they need when they need it,” he said in a statement.
Mr. Scott said working in senior care fits well with TUC’s core business model, and while the firm is focusing on some subverticals in the health care space, there will be other markets where it may be able to replicate its senior care model.
“It’s kind of early days for that. Step one is kind of identifying those subverticals where our services fit well,” he said.
While terms of the deal were not released, Wellington Financial LP did issue a release of its own, saying it had provided a “$10 million credit facility” to assist TUC in the acquisition. EPIC Capital’s health fund also provided some equity, Mr. Scott said.
TUC is also working with Canaccord Genuity on a second phase of fund-raising, Mr. Scott said, to boost its organic growth, but also with an eye on other potential acquisitions.
“Hopefully we’ll have some information on that probably in the next three to four months,” he said.