- Jayex Healthcare (JHL) has entered into an asset sale to divest its on-premises hospital queue management business
- Canadian medical technology company Vitalhub will acquire the business, as well as Jayex’s hospital contracts in the UK and Australia
- Jayex will receive £1.3 million (roughly A$2.34 million) for the sale, in a mix of cash and VitalHub shares
- Under the transaction, the company will also receive up to £1 million (around A$1.8 million) in earn-out revenue
- Jayex Healthcare is in the grey and trading at 4.7 cents per share
Jayex Healthcare (JHL) has entered into an asset sale to divest its on-premises hospital queue management business.
The company intends to sell the business to Canadian-based, TSXV-listed medical technology provider Vitalhub. Under the transaction, Vitalhub will acquire the business, including Jayex’s hospital contracts in Australia and the United Kingdom.
Jayex will retain all intellectual property and ownership of its Enlighten technology stack but will provide Vitalhub with a perpetual licence for as long as contracted clients use the Enlighten platform.
Jayex will receive £1.3 million (approximately A$2.34 million) in consideration for its divestment of the hospital queue management business. This payment will consist of £1.04 million (roughly A$1.88 million) in cash, as well as £260,000 (about A$470,000) in Vitalhub shares.
This amount will result in the issue of approximately 150,078 shares in Vitalhub to Jayex. The cash component of the consideration will be subject to a six-month escrow agreement.
On top of the initial consideration, there is also an additional earn-out component to the transaction. Over the 24 months preceding completion, Jayex will receive 50 per cent of revenue earned in excess of the transferred recurring revenue in cash.
This amount of earn-out revenue will be capped at £1 million (roughly A$1.8 million).
Jayex Healthcare’s Chairman, Michael Boyd, commented on the benefits of the company’s divestment to Vitalhub.
“The sale of Jayex’s on-premises hospital queue management business will enable us to refocus our technology efforts, accelerating other projects such as expanding our core SaaS-based Connect platform not only in the UK but also into Australia and New Zealand, as well as further exploring remote patient monitoring (RPM) and other telehealth opportunities,” he said.
“These opportunities are faster moving, higher margin, and position us for growth into clinical data management to add to our demographic data management business,” he added.
The divestment is expected to finalise at the end of April 2021.
Jayex Healthcare is in the grey, trading at 4.7 cents per share at 2:25 pm AEST.