Persistence Capital Partners (PCP) has announced the sale of Medisys Health Group Inc. to TELUS Corporation (TSX: T). The transaction closed in July 2018.
Financial terms of the transaction were not disclosed by PCP but TELUS reportedly paid approximately $146 million including the assumption of debt [mepr-active rule=”374″ ifallowed=”hide”]#Premium Subscribers ONLY Content – research and intelligence – know others don’t, be informed.#[/mepr-active][mepr-active rule=”374″]($3 million in cash, $2 million in A/P, $79 million in TELUS stock, and $62 million in repayment of Medisys’s short-term brrowing)[/mepr-active].
Founded in 1987 by Dr. Sheldon Elman, Medisys Health Group Inc. is Canada’s leading provider of comprehensive, preventive and corporate health solutions.
In March 2008, Elman family and PCP took Medisys Health Group Income Fund (formerly TSX: MHG.UN) private for $70 million to others shareholders, including debt assumption. PCP’s equity investment [mepr-active rule=”374″ ifallowed=”hide”]#Premium Subscribers ONLY Content – research and intelligence – know others don’t, be informed.#[/mepr-active][mepr-active rule=”374″]was $15 million.[/mepr-active]
update: the purchase price has been updated from $147 million to $146 million.
photo credit: Medisys Health Group
News Release
PCP Announces Sale of Medisys Health Group Inc. to TELUS Corporation
MONTREAL – August 20, 2018 – Persistence Capital Partners (“PCP”), a leading Canadian healthcare-focused private equity fund, is pleased to announce the sale of Medisys Health Group Inc. (“Medisys”) to TELUS Corporation (TSX: T) (“TELUS”), one of Canada’s leading telecommunications and digital health solutions providers.
With this acquisition, two Canadian companies with solid, decades-long track records in technology and clinical services are coming together to help support healthcare transformation in this country.
“This transaction marks an important milestone for Medisys and sets the stage for our evolution,” said Dr. Sheldon Elman, Chairman and Founder of Medisys. “Over the past 30 years, Medisys has grown from a small Montreal-based clinic to Canada’s leading provider of health and wellness services to workplaces across the country. We are honored to join the TELUS Health family and look forward to leveraging their expertise to further enhance how we provide care.”
Close to 24 million Canadians rely heavily on the healthcare benefits and services they have access to through their employer. Notably, a Sun Life study revealed that 84 per cent of Canadians believe employers have a responsibility to support the physical health of their employees, while 86 per cent feel the same about psychological health.
“Medisys has experienced tremendous growth over its history, while always remaining true to its roots and vision of outstanding customer service,” said Josh Blair, Executive Vice-President, TELUS Health and TELUS Business Solutions West and Chair, TELUS International. “With this acquisition, TELUS is charting a new course for workplace health and wellness services. We will accelerate the delivery of employee-centered care, backed by TELUS’ world-leading broadband networks and leveraging our digital tools such as patient portals, virtual care, wellness and mental health applications, electronic prescribing, electronic benefit claims and secure messaging. We look forward to supporting Medisys and its team of 800 health professionals to continue to grow.”
For more information about Persistence Capital Partners, please visit www.persistencecapital.com
Contact information for Persistence Capital Partners:
Stuart M. Elman
Managing Partner, Persistence Capital Partners
(514) 499-2778
info@persistencecapital.com
For more information about TELUS Health, please visit telushealth.com.
Contact information for TELUS Health:
Jill Yetman
TELUS Social and Media Relations
jill.yetman@telus.com
416-992-2639