QHR Technologies Inc. (TSX-V:QHR), a Kelowna-based software company, plans to spend $5 million to acquire Clinicare Corp., a Calgary-based electronic medical records firm.
The deal will expand QHR's electronic medical records subsidiary Optimed Software Corp. as it plans to retain Clinicare's Calgary and Toronto offices. Following the deal, Optimed will support more than 3,000 physicians across the country with its products.
QHR expects the deal to generate approximately $3.25 million in recurring revenue in 2010 and produce more than $6 million in recurring revenue for QHR's electronic medical records division.
The deal is expected to close at the end of November, subject to customary closing conditions and regulatory approvals.
To fund the acquisition, QHR has secured an initial $1 million from the Southern Interior Development Initiative Trust through a four-year debt agreement at 14% interest.
Additional funding is expected to come from company operations and additional equity investments by the end of the year.
QHR's share price range during the past week: between $0.60 and $0.62; 52-week high: $0.69; 52-week low: $0.135.