An Ottawa software company that connects patients with mental health professionals is being sold to a B.C.-based firm in a cash-and-share deal worth up to $3.35 million.
Snapclarity, which provides companies with tools to help employees identify health risks, personalize their care plans and get matched with therapists, has agreed to be acquired by Vancouver telehealth provider CloudMD Software & Services in a deal announced late last week.
CloudMD will pay $975,000 in cash and up to $2.375 million in common shares that will be issued at a price of 70 cents per share over the next two years. Snapclarity’s shareholders could receive an additional $3.65 million in equity-based payments if the company hits certain earnings targets in 2021 and 2022.
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Snapclarity will become a wholly owned subsidiary of CloudMD under the agreement, which still must be approved by regulators and Snapclarity’s shareholders. Publicly traded on the TSX Venture Exchange, CloudMD now offers software-as-a-service-based health-care solutions to nearly 400 clinics across Canada.
In a statement, CloudMD said Snapclarity’s app “effectively blends intervention with technology, artificial intelligence and human touch that supports a variety of mental health issues.”
Launched about four years ago, Snapclarity landed $1.5 million in venture capital in late 2017. The company was named “Next Big Thing” at the Best Ottawa Business Awards last November and announced late last year it was planning to expand to the West Coast.
Snapclarity president and co-founder Jeff Deriger did not immediately respond to requests for comment on Monday.