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  5. VHI: Performing very well on a tough overall day, clearly the market is very impressed with VHI's acquisition of Strata Health. [Vitalhub Corp.]
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Q: Performing very well on a tough overall day, clearly the market is very impressed with VHI's acquisition of Strata Health.

As always, would appreciate your analysis.
Asked by karl on November 01, 2024
5i Research Answer:

The deal looks good to us;  Strata Health Solutions is a patient flow solutions provider with over 80 health systems partners and serves over 500 hospitals across Canada, the U.K., the U.S. and New Zealand. It processes 800,000 patient transitions annually. Management noted in a recent industry conference that it aims to double VitalHub’s market share to 4% of its total addressable market, expanding into additional single-payer markets through larger M&A deals. Quoting a third party analyst: The latest announcement demonstrates the scale and high-quality business that VHI is executing on. In terms of financial impact, the deal was $32.3M, with incentives up to another $4.5M. It was part shares, part cash, and adds about $13M in revenue. VHI has a successful M&A record (20 deals) and investors liked the news, with the stock hitting new highs and attracting new investors.