WELL Health acquires cybersecurity firm Source 44
November 18, 2020
VANCOUVER – WELL Health Technologies Corp., a company focused on modernizing healthcare clinics, has agreed to acquire Source 44 Consulting Inc., a provider of cybersecurity services and solutions for businesses that is based in Markham, Ont.
“We are very pleased with the proposed acquisition of Source 44 as it complements our existing cybersecurity business unit and positions WELL as a leader in providing cybersecurity services,” said Hamed Shahbazi (pictured), chairman and CEO.
“Our objective is to be a consolidator in the Canadian cybersecurity space with the overarching goal of helping keep data, including highly sensitive health data, safe and secure.”
He added that, “Source 44 has a proven track record of providing managed cybersecurity services, and complex security related products and services to organizations of all sizes particularly large enterprises, including healthcare organizations.”
WELL will pay $6.3 million in cash; $2.1 million in WELL shares; a 120 day holdback amount of $2.1 million that may be paid in WELL common shares; a multi-year performance earn-out of up to a maximum amount of $4.2 million that may be paid in WELL common shares; and a two-year time based earn-out of $1,050,000 that may be paid in WELL common shares.
Source 44 provides a wide array of cybersecurity services including managed network and vulnerability services, risk assessments, penetration testing and cybersecurity audits, in addition to deploying network and security related products and solutions for businesses. Over the past 12 months Source 44 has achieved more than $20 million in revenues and EBITDA of more than $2 million.
Source 44 will continue to be operated by its founders Peter Giannoulis and Robert Kostecki and will be situated in WELL’s cybersecurity business unit Cycura Data Protection Corp. The parties will look to leverage Source 44’s capabilities to improve the security posture within the Canadian healthcare ecosystem.
“The Source 44 team is excited to be joining WELL Health on their mission to positively impact health outcomes by leveraging technology,” said Source 44 founder Peter Giannoulis. “Cybersecurity continues to be a top priority for the healthcare industry, and we believe our experience servicing healthcare customers over the past decade will be mutually beneficial.”
The closing of the transaction is subject to a number of conditions, including TSX approval, and is expected to be completed by December 1, 2020.
About WELL Health Technologies Corp.
WELL is an omni-channel digital health company whose overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health. As such, WELL owns and operates 20 primary healthcare clinics, is Canada’s third largest digital Electronic Medical Records (EMR) supplier serving over 2,000 medical clinics, operates a leading national telehealth service and is a provider of digital health and cybersecurity related technology solutions. WELL is an acquisitive company that follows a disciplined and accretive capital allocation strategy. To access the company’s telehealth service, visit virtualclinics.ca and for corporate information, visit www.well.company.