Dialogue Health Technologies Inc. (TSX:CARE) entered into an agreement to acquire Tictrac Limited for £35 million on April 13, 2022. The transaction is subject to closing customary conditions. A consideration of £15.0 million will be paid in cash on the date of closing, with the remaining earn-out consideration of up to £20 million payable upon achievement of certain revenue milestones.

Tictrac recorded revenue of £3.3 million and EBITDA loss of £3.5 million in 2021. Martin Blinder, co-founder and Chief Executive Officer of Tictrac, will continue to lead the Tictrac team, reporting to Cherif Habib, Chief Executive Officer of Dialogue. The transaction is expected to close within 30 days.

The deal is earnings accretive and from a preliminary analysis Dialogue predicts that annual recurring revenue synergies of CAD 8 to 10 million by the end of 2024 could be achieved. McCarthy Tétrault LLP acted as legal advisor to Dialogue Health Technologies Inc. Cavendish Corporate Finance LLP acted as financial advisor and Armstrong Teasdale LLP acted as legal advisor to Tictrac Limited.