- Cycura is a leader in providing top-tier cyber security
services, whose key principals have extensive experience in
protecting patient health data in the provincial Ministry of Health
and acute care hospital settings.
- The acquisition is intended to elevate WELL's overall
cybersecurity and risk management program and provide WELL with
another compelling opportunity to build shareholder value through
accretive and disciplined capital allocation in the cybersecurity
space.
- In the past 12 months, Cycura's Services Division has generated
revenues of more than $1.7M with
better than double digit EBITDA(1) profitability.
VANCOUVER, BC, Aug. 4, 2020
/CNW/ - WELL Health Technologies Corp. (TSX: WELL)
(the "Company or "WELL"), is pleased to
announce that it has completed its previously announced acquisition
of the Services Division of Cycura Inc.(2), a private
Ontario corporation. The
purchase price was approximately $2.55M, paid entirely with cash on hand, and
subject to certain holdbacks, adjustments, and time-based payments.
In the past 12 months, Cycura Inc.'s Services Division
generated revenues exceeding $1.7M
with EBITDA margins of over 10%. In addition, WELL announces
it is retaining the Cycura brand name and the formation of a new
business unit called Cycura Data Protection Corp.
("Cycura"). This new business unit will be led by
Iain Paterson, who was previously
the Managing Director of Cycura Inc. and will be the CEO of Cycura
going forward. Iain will be supported closely by Melinda
Coultar who was the Director of Consulting at Cycura Inc., and will
now see an elevated role serving as Vice President of Services.
"We are very excited to welcome the talented and experienced
team from Cycura led by Iain and Melinda and look forward to their
leadership of the new Cybersecurity business unit at WELL," said
Hamed Shahbazi, Chairman and CEO of
WELL. "We believe this business unit will be a key leader and
consolidator in the Canadian cybersecurity space with the
overarching goal of helping keep private data including highly
sensitive health data safe and secure"
Cycura provides industry leading cybersecurity services
including penetration and vulnerability testing, security focused
code reviews, incident response services, cybersecurity training,
cybersecurity M&A advisory and technical due diligence
services, and more. Cycura will operate as a wholly owned
subsidiary of WELL, providing cyber security protection and patient
data privacy solutions across all of the Company's business units
including WELL Health Clinic Network, WELL EMR Group and WELL
Digital Health Apps. In addition, Cycura will continue to
serve its existing customers across a broad array of industries,
including healthcare clients focusing on mental health,
telemedicine, health insurance and benefits.
"We are excited to join WELL who shares our belief in the
importance of improving cybersecurity resilience in the healthcare
and health tech sector," said Iain
Paterson, CEO of Cycura. "While Cycura will continue
to serve our valued customers across a broad array of industries,
we believe this is a tremendous opportunity for us to increase our
market share in healthcare, while operating as a standalone
business within WELL."
Mr. Paterson is a highly skilled information security leader and
practitioner with more than 15 years of experience in enterprise
wide information technology. Previously, Mr. Paterson was the
Information Security Officer for Trillium Health Partners, one of
the largest hospitals in Canada
and worked under the office of the CISO at eHealth Ontario, which houses the healthcare records
of 13M Ontario citizens and acts as the main data
share for the majority of Ontario's hospitals. Iain holds an MBA
with a focus in Leadership and Innovation, and has industry CISSP,
CISM and SABSA certifications.
All key employees of Cycura are being retained under Mr.
Paterson and Ms. Coultar's leadership whose focus and energy
will ensure that WELL not only continues to provide the high
quality service that clients have come to expect from the Cycura
brand, but also expand product and service offerings so that Cycura
can tackle a greater number of challenges and be a more valuable
vendor to its client base.
Cycura was initially founded and supported by a diverse and
successful group of investors and operators represented by Mr.
Eitan Popper. WELL extends its
appreciation to this group for their hard work in consummating the
transaction.
"This is a beneficial transaction for both WELL and Cycura Inc.
The importance of cybersecurity for practically any industry has
become an indisputable reality. I believe that WELL will be
able to leverage the capabilities of the Services Division of
Cycura Inc., while at the same time enabling and supporting the
Division's growth", stated Eitan
Popper, Chairman of Cycura Inc.
- EBITDA is a Non-GAAP measure. Earnings before interest,
tax, depreciation and amortization ("EBITDA") should not be
construed as an alternative to net income/loss determined in
accordance with IFRS. EBITDA does not have any standardized
meanings under IFRS and therefore may not be comparable to similar
measures presented by other issuers. The Company believes
that EBITDA is a meaningful financial metric as it measures cash
generated from operations.
- As a condition of the transaction, Cycura Inc. will change its
name while WELL will retain the Cycura name and brand and
henceforth operate the Cycura Services Division as Cycura Data
Protection Corp.
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed
Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
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 technology and
trends in digital health. As such, WELL owns and operates 20
primary healthcare medical clinics, is Canada's third largest Electronic Medical
Records (EMR) supplier serving over 1,900 medical clinics, operates
a leading national telehealth service and is a provider of digital
health technology solutions. WELL is an acquisitive company
that has completed twelve acquisitions and three equity
investments. The Company is publicly traded on the Toronto
Stock Exchange under the symbol "WELL". WELL was recognized
as a TSX Venture 50 Company three years in a row in 2018, 2019 and
2020. To access the Company's telehealth service, visit:
virtualclinics.ca and for corporate information, visit:
www.WELL.company.
Notice Regarding Forward Looking Statements:
Certain statements in this news release related to the Company
are forward-looking statements and are prospective in nature.
Forward-looking statements are not based on historical facts,
but rather on current expectations and projections about future
events, and are therefore subject to risks and uncertainties which
could cause actual results to differ materially from the future
results expressed or implied by the forward-looking statements.
These statements generally can be identified by the use of
forward-looking words such as "may", "should", "could", "intend",
"estimate", "plan", "anticipate", "expect", "believe" or
"continue", or the negative thereof or similar variations.
Forward-looking statements in this news release include:
statements regarding the closing of the Transaction,
post-closing objectives of WELL for the Cycura brand, the
expectation that the Transaction will be immediately accretive to
WELL, and the anticipated margins thereof, the statement that the
business unit will be a key leader and consolidator and the
intention to retain all key employees of Cycura. There are
numerous risks and uncertainties that could cause actual results
and WELL's plans and objectives to differ materially from those
expressed in the forward-looking information, including: (i)
adverse market conditions; and (ii) risks inherent in the cyber
security industry in general and other factors beyond the control
of the Company; (iii) risks related to the inability to close the
Agreement for any reason; (iv) difficulties associated with the
integration of the business; and (v) risks outlined in WELL's
publicly filed periodic documents available on SEDAR. Actual
results and future events could differ materially from those
anticipated in such information. These and all subsequent
written and oral forward-looking information are based on estimates
and opinions of management on the dates they are made and are
expressly qualified in their entirety by this notice. Except
as required by law, the Company does not intend to update these
forward-looking statements.
Neither the Toronto Stock Exchange nor its Regulation
Services Provider (as that term is defined in policies of the
Toronto Stock Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE WELL Health Technologies Corp.