August 22, 2016
Loblaw Companies Ltd. and QHR Corp. today announced a definitive agreement under which it will acquire all of the outstanding common shares of QHR. QHR, a B.C.-based healthcare technology company specializing in the electronic medical records (EMR) market, provides software for healthcare providers and their patients.
Under the terms of the agreement announced today, Loblaw has agreed to acquire all of QHR’s outstanding common shares for $3.10 in cash per each QHR share, or approximately $170 million in the aggregate. This price represents a 29% premium to the 20-day volume weighted average trading price of QHR’s common shares on the TSXV and 22% premium to the closing price of QHR’s common shares on the TSXV, as of August 19, 2016. In addition, all holders of outstanding stock options of QHR which have an exercise price below the purchase price of $3.10 per QHR share will be entitled to receive the “in-the-money” value of such stock options, less applicable withholdings.
The transaction has been unanimously approved by the board of directors of QHR on the recommendation of an independent committee of the board of directors.
QHR is expected to operate as a distinct business within the Shoppers Drug Mart division of Loblaw, and remain headquartered in Kelowna, B.C.
“The future of healthcare is digital and this strategic investment will make us a better partner to patients and providers,” said Jeff Leger, executive vice president, pharmacy and healthcare, Loblaw and Shoppers Drug Mart. “QHR brings complementary talent and technology to our organization, providing opportunities to establish new business partnerships and drive improved care coordination for Canadians.”
According to the two firms, QHR supports 7,700 healthcare providers, representing about 20% of EMR technology use nationwide.