Montréal-based Dialogue is set to acquire digital health and well-being company Tictrac for up to $56 million (all numbers CAD), comprising a combination of cash-on-hand and a treasury issuance of common shares of the company.
UPDATE (02/05/2022): As of April 30, Dialogue has closed its acquisition of Tictrac.
The transaction includes consideration of $24 million paid in cash once the acquisition closes, with the remaining earn-out consideration of up to $32 million upon achievement of certain revenue milestones by Tictrac.
Dialogue CEO Cherif Habib describes Tictrac as Dialogue’s largest acquisition to date.
Based in London, United Kingdom, Tictrac’s employee well-being platform provides users with a suite of personalized well-being content, campaigns, programmes and team-building challenges designed to deliver “meaningful behaviour change.”
A spokesperson for Dialogue told BetaKit that Tictrac’s management, as well as its office in London, will be maintained by Tictrac. Tictrac CEO Martin Blinder will continue to operate the company outside of Canada.
Toronto Stock Exchange (TSX)-listed Dialogue said its acquisition of Tictrac will present opportunities to accelerate the development of Dialogue’s integrated health platform (IHP) through the addition of Tictrac’s SaaS-based offering.
Founded in 2016 and incubated in Diagram Ventures, Dialogue provides a virtual healthcare and wellness platform that offers affordable, on-demand access to quality care. Its IHP is a one-stop healthcare hub that centralizes all of its programs and services in a single application that is accessible through a smartphone, computer, or tablet.
Dialogue CEO Cherif Habib describes Tictrac as Dialogue’s largest acquisition to date in terms of size, amount, employees, as well as potential, and “contributes directly to the ambitious growth objectives” that the company laid out in its initial public offering (IPO) plan last year, which mentioned product expansion, as well as acquiring and investing in complementary businesses.
When Dialogue went public on the TSX last March, the telehealth firm sold an aggregate of 8,334,000 common shares at a price of $12 per share, securing total gross proceeds of approximately $100 million. At the time, the company noted it also plans to use its IPO capital to build and implement new health services in end-markets and grow its customer base.
Fuelled by a sizable IPO, Dialogue went on to acquire internet-based cognitive behavioural therapy solutions provider e-hub Health last May for an undisclosed amount.
Before tapping into the public markets, Dialogue’s acquisition strategy was backed by a series of institutional financing rounds, including a $43 million round in July 2020, led by Canadian life insurance company Sun Life Financial.
Dialogue’s past acquisitions include Optima Global Health, and Argumed Consulting Group, as well as the purchase of DXA, an AI-powered tool designed to replicate how an ER doctor’s brain thinks, in 2018.
Feature image from Dialogue