Montreal digital health company Carebook is acquiring Winnipeg-based health and productivity risk management firm InfoTech Inc. The price is $9 million in cash and $5 million in stock at a price of C$1.21 per Carebook Share.

The move comes after Carebook closed a credit facility with a Canadian Schedule 1 Bank worth $11 million. Carebook creates digital health products for pharmacies, insurance providers, governments and others.

“Combining InfoTech’s global and dynamic operations with those of Carebook will allow us to leverage the Wellness Checkpoint platform and blue-chip customer base with Carebook’s core engagement platform,” said Carebook CEO Pascal Audette. “This acquisition positions Carebook for overall growth on a global basis in the employer vertical.”

Carebook’s $11 million credit facility is made up of $7 million revolving term facility and a $4 million non-revolving term loan facility.

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InfoTech is a profitable company. The combined unaudited trailing twelve-month revenue of Carebook’s and InfoTech’s operations would have been $7.7 million as of September, 2020.

InfoTech says its Wellness Checkpoint platform is the first online, interactive health risk assessment. It focuses on employees’ physical health, mental health and well-being, and their impact on work. Wellness Checkpoint has served nearly one million employees and has evolved into a multilingual, web-based service used by many Fortune 500 companies in over 100 countries.

Delivered as an online, multilingual (26 languages), global hosted Software as a Service, Wellness Checkpoint integrates into health, benefits, HR and risk management.

“My personal and business mission has always been to support employers globally in making informed risk management decisions with a broader view of risk that encompasses physical, psychological and organizational factors, said InfoTech CEO Zorianna Hyworon. “Working with Carebook, a company also rooted in science and with a like-minded, people-centric vision, presents an opportunity for more innovation, more engagement, and more growth globally.”

Reverse takeover and previous acquisition of Pike

Carebook had previously acquired Pike Mountain Minerals Inc. of Vancouver in order to go public, but not through the traditional initial public offering route. To do that, they did a reverse takeover. Carebook raised private placement financing in the amount of $21 million in connection with the transaction, led by Canaccord Genuity.

CRBK currently trades at about $1.20 on the TSX-V.