Healthcare Services Acquisitions in Canada

VitalHub Corp, a Toronto-based healthcare software company, agreed to acquire clinical decision support firm MedCurrent and its core product OrderWise for up to $24.5 million. The consideration includes about $8.7 million in cash at closing plus up to about $15.8 million in performance-based earn-outs over three years, with closing expected by early September pending approvals.

Everest Clinical Research, a contract research organization (CRO) backed by Arlington Capital Partners, has acquired European CRO August Research for undisclosed terms. The deal expands Everest’s footprint into Western and Eastern Europe and strengthens its clinical trial services and pharmacovigilance capabilities, while August’s founders and local managing directors will remain in leadership roles post-transaction.

Sun Life Financial Inc. entered into an arrangement agreement to acquire all outstanding common shares of Dialogue Health Technologies Inc. for C$5.15 per share, valuing Dialogue at approximately C$365 million on a fully diluted basis. Dialogue will continue to operate as a standalone entity headquartered in Montréal, Québec, with certain members of executive management rolling equity and retaining a minority stake post-close.

TELUS Corporation entered into a binding arrangement agreement to acquire all issued and outstanding common shares of LifeWorks Inc. in a cash-and-stock transaction. LifeWorks shareholders may elect cash, TELUS shares, or a combination (subject to proration), valuing the deal at approximately C$2.9 billion including net debt. The acquisition is intended to combine LifeWorks with TELUS Health to create a global, employer-focused digital-first healthcare and wellbeing platform.

The Kensington Private Equity Fund (Kensington) acquired Resolute Health Corporation Limited, a Canadian healthcare services provider focused on testing and treatment for obstructive sleep apnea. Resolute will partner with Kensington to expand its geographic reach and continue scaling its network of sleep therapy clinics across Canada.

Neighbourly Pharmacy Inc. entered into a definitive agreement to acquire all shares of the entity that owns and operates Rubicon Pharmacies, a 100-location network of community pharmacies in Western Canada, for $435 million in cash (subject to customary adjustments and ROFR-related exclusions). The deal is expected to close in Q2 2022 and will be financed through a combination of equity (including a public subscription receipt offering and a concurrent investment by Persistence Capital Partners) and credit facilities/cash on hand.

CAI Capital Partners closed an investment in RebalanceMD Canada Ltd., a Victoria, British Columbia-based operator of musculoskeletal care medical clinics offering orthopedic surgical procedures and non-surgical services. The investment will fund RebalanceMD’s growth through opening new clinics initially in British Columbia and Alberta, with longer-term expansion across Canada.

NEOMED-LABS / Pacific Biomarkers (NLPBI) announced the acquisition of PAIRimmune, a preclinical immunology contract research organization based in Laval, Quebec. The deal strengthens NLPBI’s immunology services offering, expanding capabilities in ligand binding and neutralization assays R&D, flow cytometry, and in vivo/ex-vivo/immunohistology components. PAIRimmune will continue operating under the leadership of CEO Danielle Poirier and will be rebranded alongside NEOMED-LABS and Pacific Biomarkers under a new corporate identity.