VitalHub announces acquisition of Strata Health

TORONTO and CALGARY – VitalHub Corp. has acquired Strata Health Solutions Inc., a leading provider of patient flow solutions internationally. Based in Calgary, Strata Health designs, builds, and deploys software that improves access and navigation to care.

Strata Health has over 80 health system partners and works with over 500 hospitals to provide over 800,000 patient transitions annually. The company serves customers in Canada, the UK, the US, and New Zealand with offices internationally.

“We are excited to announce our 20th and largest acquisition to-date of Strata Health,” said Dan Matlow, CEO of VitalHub. “We have seen Strata Health grow over the years and believe there is an incredible opportunity to expand electronic referral solutions internationally and to better serve our combined group of healthcare partners.”

The purchase price paid at closing was composed of a cash payment of $18.6 million and the issuance of 1,480,726 common shares of VitalHub. The maximum amount payable under the all-cash performance-based earn-out is $4.5 million over the period from closing to June 30, 2027.

For the 12-month period ending June 30, 2024, Strata Health had estimated total revenue of $12.7 million.

Strata Health extends VitalHub’s solution set into the electronic referral market, a large and growing market opportunity internationally.

Poor transitions of care result in fragmented delivery, unsatisfactory patient outcomes, and billions of dollars of inefficient healthcare system spend annually. Strata Health’s digital suite solves for these problems with solutions like electronic referral, waitlist management, and placement automation.

VitalHub has acquired Strata Health for total up-front consideration of $32.3 million, plus potential performance-based consideration.

“We are thrilled to be joining the VitalHub team and look forward to enhancing our product and market roadmap with the support of the VitalHub platform,” said Peter Smith, President and CEO of Strata Health. “This collaboration will allow us to offer a more comprehensive solution for our customers that will improve healthcare processes internationally.”

B.C. Ziegler and Company, a healthcare specialty investment bank, served as financial advisor to Strata Health Solutions for the transaction.

About Strata Health
Founded in 2002, Strata Health is a leading provider of transitions of care technology internationally. With offices in Canada, the US, and the UK, Strata Health is partnered with over 80 health systems and 500 hospitals and has optimized over 17 million transitions of care worldwide. Using digital tools and automated workflows, Strata Health’s platform empowers care coordinators to orchestrate safe, seamless, and efficient transitions across the care continuum. More information can be found on the company webpage at www.stratahealth.com.

About VitalHub
VitalHub is a leading software company dedicated to empowering Health and Human Services providers. Our clients include hospitals, regional health authorities, mental health and addictions services providers for children and adults, long-term care facilities, home health agencies, correctional services, and community and social services providers. VitalHub’s comprehensive suite of SaaS solutions include electronic health record (EHR), case management, care coordination, and optimization, patient flow, operational visibility, and patient journey optimization, workforce automation and compliance.