OTTAWA, Jan. 31, 2020 -- Calian Group Ltd. (TSX: CGY) today announces its acquisition of two Ottawa-based health companies, Allphase Clinical Research Services Inc. and Alio Health Services Inc. (collectively, “Allphase/Alio”).
The companies serve the pharmaceutical and medical device industry and the broader health care sector with clinical trial services, specialty medication support and community care and other services, all enabled by an innovative health care delivery management software application. The transaction provides Calian’s Health segment with access to innovative services and new customer segments in pharmaceuticals, hospital care and patient support at home.
Established in 2001, Allphase Clinical Research is a full-service Contract Research Organization (CRO) providing high-quality clinical development management and strategy services for pharmaceutical and medical device companies that have products in development or approved and marketed.
Since its launch 2012, Alio Health Services has grown rapidly in the areas of Patient Support Program management and health resource optimization. Alio Health specializes in the design and implementation of comprehensive Patient Support Programs that enhance the patient's experience throughout their treatment journey. Its services are enabled by Alio’s innovative HOMETM software application which streamlines the scheduling and delivery of health services for hospitals, health care institutions and home care locations. Driven by proprietary systems and HOMETM system automation, Alio’s Patient Support Programs ensure superior quality control and the provision of more cost-effective in-home services.
“We are very pleased to join the Calian team and a larger, innovative market player,” said Jeff Smith, President, Allphase/Alio. “At Allphase and Alio Health, we are focused on creating the best experiences for patients, caregivers and the health care industry. Calian’s scale and market reach will enable Allphase/Alio’s continued expansion within the health sector and support our ability to take our proprietary software products, systems and services to the next level.”
“I am excited to bring Jeff and the entire Allphase/Alio team on board at Calian. This acquisition will accelerate our access to emerging technologies and business in new markets, encompassing hospitals, patient support at home and clinical trial services,” said Gordon McDonald, Vice President, Health, Calian. “As we leverage the HOMETM software application across Calian’s existing health services portfolio, we see significant potential to drive new business and create efficiencies within our current health services.”
The amount paid on closing of $14.5 million is comprised $12 million cash and 62,054 common shares. Additionally, the agreement contains two earnout payments on the first- and second-year anniversaries, of $6 million and $6 million respectively, based on the achievement of a certain level of EBITDA in each of those periods. Allphase/Alio’s results will be consolidated and reported within Calian’s Health segment.
“This strategic acquisition supports all four pillars of our growth framework. It diversifies our customer base into pharmaceuticals, home care and hospitals, and supports Calian’s innovation agenda with services enabled by sophisticated software. We see opportunities to evolve this software within our Health segment and strengthen Calian’s position in technology-enabled health solutions,” stated Kevin Ford, President and CEO, Calian. “I would like to extend a warm welcome to the Allphase/Alio team, whose addition to Calian will support our health innovation objectives and sales efforts in new markets domestically and globally. At Calian we believe in investing in technologies that can improve the performance of our health system.”