CloudMD Software & Services, a healthcare technology company, closed the acquisition of Oncidium, a Canadian healthcare provider.
Concurrent with the closing of the acquisition, CloudMD secured credit facilities of up to $62 million, with Oncidium entering into a senior credit agreement with the Bank of Montreal.
BMO will be providing a committed senior term loan of up to $25 million to fund a portion of the initial cash consideration of the transaction with Oncidium. In addition, BMO also provided an uncommitted senior term loan structured to fund $24 million of any performance-based earnouts over a three-year period at the time of payment. BMO also provided a committed revolving facility for working capital purposes and an uncommitted accordion facility for future acquisitions in the amounts of $3 million and $10 million, respectively.
The credit facilities will have a term of three years and are secured by a first ranking security interest in all the present and future assets and subsidiaries of Oncidium, including a guarantee from CloudMD.
The credit agreement contains usual representations, warranties and covenants associated with a financing transaction of this nature.
After closing the acquisition of Oncidium, CloudMD will have approximately $55 million in cash available to fund future growth.
Echelon Capital Markets acted as the exclusive financial advisor to CloudMD in the arrangement of its credit facilities and in connection with the acquisition.
KES 7 Capital acted as the exclusive financial advisor to Oncidium in connection with the transaction with CloudMD.
