AlayaCare buys Pennsylvania-based Delta Health Technologies to bolster US presence


Following its $225 million Series D raise in June, AlayaCare is making good on its promise to further push into the United States with its new acquisition of Delta Health Technologies.

Based in Altoona, Pennsylvania, and Ohio, Delta’s solutions optimize resource management, billing and clinical point of care for home health, hospice, and private duty providers.

AlayaCare is a home care software company. Its platform for home and community care providers manages the entire client lifecycle from referrals and intake to billing, payroll, and beyond, and combines traditional in-home and virtual care solutions.

The acquisition closed on October 28. The financial terms of the deal were not disclosed.

The company hopes to grow to $25 million annual recurring revenue in terms of new customers, with more than half of that in the United States.

Adrian Schauer, AlayaCare’s founder and CEO, said Delta’s team brings a lot of market intelligence to the table that will enable AlayaCare to make great inroads into the United States market.

“There is a ton of domain knowledge in the team there,” Schauer told BetaKit. “That, first and foremost, is a big asset for us. They know the home health and hospice space inside-out in the US.”

Schauer said Alaycare has “big ambitions” in the United States market. The company hopes to grow to $25 million annual recurring revenue in terms of new customers, with more than half of that in the United States. “So it’s very important to us to have that deep domain knowledge,” Schauer said.

Founded in 1968, Delta began by offering data processing services. Now, the company’s cloud-based system helps home health care agencies and hospices with workflows, assisting with billing, scheduling, documentation and other tasks.

Delta brings more than 45 new employees and over 100 customers to AlayaCare. That gives the latter company, which currently has about 550 customers, almost 600 employees.

All of Delta’s employees, including CEO Tony Ott, will be integrated into AlayaCare. Schauer said Ott will be focused on helping accelerate AlayaCare’s growth in the United States’ home health and hospice market.

“The big prize we’re chasing as an organization is to have a modern cloud platform that serves every aspect of care at home. The segment that Delta is in rounds out our offering for the US market,” Schauer said.

RELATED: AlayaCare raises $225 million CAD Series D round

Founded in 2014, AlayaCare currently operates in Canada, the United States, and Australia. Since its beginnings the startup has raised $250 million of growth capital. The bulk of that money came in June following a $225 million Series D round led by Al Gore’s Generation Investment Management.

Delta’s acquisition is the fifth for AlayaCare. Its other acquisitions include Arrow Solutions, and Procura.

AlayaCare made the Deloitte Technology Fast 50 list in 2020, which recognizes technology companies with the highest revenue growth percentage over the previous four years. AlayaCare ranked 17th on the list with a 1,051 percent gain in revenue growth from 2016 to 2019.

Schauer isn’t prepared to stop there. He wants to quadruple the company’s business over the next three years. Asked if he might take the startup public, he replied: “We are focused on growing the business, and having an impact, and will pursue the capitalization structure that supports that. We don’t have any immediate plans to go public.”

That may be so, but AlayaCare is one of the first nine companies selected for Inovia Capital’s new fund, the Inovia Continuity Fund I L.P., which is extending support to firms it believes will be IPO-ready within the next five years.

Schauer noted that AlayaCare had been “courting” Delta for over a year, trying to convince them to be acquired. “Eventually we were successful. It was a question of timing. The relationship was good from day one.”

Charles Mandel

Charles Mandel

Charles Mandel's reporting and writing on technology has appeared in, Canadian Business, Report on Business Magazine, Canada's National Observer, The Globe and Mail, and the National Post, among many others. He lives off-grid in Nova Scotia.

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