Loblaw makes $170 million bid for QHR
September 7, 2016
BRAMPTON, Ont. and KELOWNA, BC – Loblaw Companies Limited and QHR Corporation have announced an agreement under which Loblaw will acquire all of the outstanding common shares of QHR. QHR is a Canadian healthcare technology company and a leader in the electronic medical records (EMR) market, providing software for healthcare providers and their patients.
Under the terms of the agreement, Loblaw has agreed to acquire all of QHR’s outstanding common shares for approximately $170 million in the aggregate.
The transaction has been unanimously approved by the board of directors of QHR on the recommendation of an independent committee of the board of directors. Paradigm Capital is acting as financial advisor to the board of directors of QHR for purposes of this transaction and has delivered an opinion to the board of directors that the consideration under the transaction is fair, from a financial point of view, to QHR shareholders.
QHR shareholders, including all of its directors and officers, PenderFund Capital Management Ltd. and Al Hildebrandt, which collectively control approximately 23% of the outstanding common shares have entered into binding agreements in which, subject to the terms and conditions therein, they have committed to vote in favour of the transaction.
QHR is a natural complement for Loblaw, a trusted source of pharmacy and health and wellness solutions for patients and providers nationally. QHR is expected to operate as a distinct business within the Shoppers Drug Mart division of Loblaw, and remain headquartered in Kelowna, British Columbia. The transaction has the full support of QHR’s management team, who have all agreed to continue with QHR in their current roles and be a part of Loblaw’s broader pharmacy and healthcare group.
“The future of healthcare is digital and this strategic investment will make us a better partner to patients and providers,” said Jeff Leger, executive vice president, pharmacy and healthcare, Loblaw and Shoppers Drug Mart. “QHR brings complementary talent and technology to our organization, providing opportunities to establish new business partnerships and drive improved care coordination for Canadians.”
Today, QHR supports 7,700 healthcare providers, representing about 20% of EMR technology use nationwide. It will continue to develop its leading EMR platform and interoperability, and expand solutions for effective patient care and practice management.
“Our focus, as always, remains great service and the continued delivery of innovative technology that connects healthcare providers and their patients,” said Mike Checkley (pictured), the president and CEO of QHR. “We are excited to join Shoppers Drug Mart and we see the acquisition as a great vote of confidence for our team, our technology solutions, and the thousands of physicians and business partners that rely on our products daily.”
The transaction will be carried out by way of a statutory plan of arrangement and will require court approval and the approval of at least 66 2/3% of the votes cast by the shareholders of QHR at a special meeting expected to take place in October 2016.
About Loblaw Companies Limited
With more than 2,400 independent and corporate-owned grocery stores and pharmacies, Loblaw is a Canadian retail leader, dedicated to advancing the health and wellness of Canadians. Its company purpose – Live Life Well – is supported by its 5,000 healthcare professionals, including pharmacists, opticians, dietitians, and nurses, offering a range of services like prescriptions, med checks, flu shots, minor-ailment diagnoses, and nutrition consultations. Each week, 17 million Canadians interact with Loblaw in stores or online.
QHR is a leader in healthcare technology, empowering providers and connecting patients. With a 12-year track record offering what is now the single leading electronic medical records platform in Canada, QHR has a suite of complementary offerings that empower health professionals. The company’s technologies and services enable secure medical records management for clinical environments, empowering health providers with tools for virtual care, including secure video and messaging, as well as tools for clinic management including scheduling, billing, and patient management. Health providers choose QHR to drive efficiencies within their practice and improve the quality of care delivered to patients.