30
Mar

Dialogue Health shares surge 20% on TSX debut

Dialogue Health Technologies Inc. shares surged in an initial public offering on the Toronto Stock Exchange.

The Montreal-based telemedicine company priced 8.34 million shares in its IPO at $12 each to generate aggregate gross proceeds of about $100 million, but its stock jumped by 25 per cent to reach $15 in mid-morning trading Tuesday.

“This IPO is an exciting new chapter for Dialogue,” said Cherif Habib, the company’s chief executive, in a statement.

“We will continue growing our platform, launching new health and wellness programs and bringing our solution to millions of people worldwide. A warm welcome to our new shareholders and partners joining us on this journey.”

For Habib, Tuesday was a moment that took five years to materialize and was given an extra boost by the COVID-19 pandemic.

Since 2016, when Habib founded Dialogue with Alexis Smirnov and Anna Chif, the company has been rapidly growing and picking up partners keen on remotely connecting health professionals with Canadians seeking medical advice.

The health crisis kicked those trends into high gear and generated a surge in interest around telemedicine as Canadians moved to work from home and limit their exposure to the virus.

Dialogue was well poised to take advantage. While others were laying off workers and preparing to cut wages and hours last March, Habib hired at least 250 staff.

By July, he and Dialogue had hooked Sun Life Financial Inc. too. The Toronto-based insurance provider became minority owner of Dialogue through a commercial partnership that involved a $32.7-million equity investment and gave Sun Life rights to acquire additional equity later.

A prospectus Dialogue filed along with its IPO showed it has partnered with Canada Life Assurance Co., Beneva and Desjardins and counts National Bank of Canada, Lightspeed POS Inc., Ubisoft, Samsung, Sobeys and Sephora as customers.

Dialogue’s prospectus also revealed that its offering could see shareholders Sun Life, White Star Capital’s Fund VI and HV Holtzbrinck Ventures Fund VI SCS own about 14, 13 and 10 per cent of the company’s stock, respectively.

Under the offering, Dialogue’s underwriters have a right to buy more than 1.25 million or $15-million worth of stock from investors.

The offering was led by National Bank Financial Inc., RBC Capital Markets, Scotiabank and TD Securities Inc. and includes CIBC World Markets Inc., Desjardins Securities Inc., Canaccord Genuity Corp., iA Private Wealth Inc., INFOR Financial Inc. and Laurentian Bank Securities Inc.

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    AI STARTUP RUBIKLOUD TO BE ACQUIRED BY OTTAWA-BASED KINAXIS FOR $81.4 MILLION CAD

    OTTAWA, ON, June 15, 2020 – Kinaxis® Inc. (TSX: KXS), the authority in driving agility for fast, confident decision-making in an unpredictable world, has signed a definitive agreement to acquire Toronto-based Rubikloud, a disruptive, emerging provider of AI solutions that automate supply chain prescriptive analytics and decision-making in the retail and consumer packaged goods (CPG) industries.

    Globally-recognized retailers and CPG manufacturers in the health and beauty, household and grocery segments use Rubikloud’s AI-based products today. Their offerings include demand forecasting and automation to manage and optimize trade promotions, pricing and assortment to drive product demand and dramatically improve financial results. Kinaxis will enhance RapidResponse’s demand planning capabilities with the Rubikloud offerings, anticipating initial opportunities in the company’s rapidly-growing CPG customer base and over time for other industries such as life sciences. The acquisition also offers Kinaxis a springboard into the enterprise retail industry.

    “Rubikloud has capabilities and value that we can offer our CPG customers today, leads us into the retail industry with some bellwether accounts, and adds a group of approximately 80 people to an already-impressive AI and machine learning (ML) team here at Kinaxis. Over time, this enhanced group will contribute to new and existing AI-powered capabilities across the full Kinaxis RapidResponse® platform and applications,” said John Sicard, President and CEO of Kinaxis. “This acquisition reflects the growing importance of AI and ML to power intelligent automation and augment human decision-making to better deliver on customer promises, remove waste and increase resiliency for effective risk management.”

    Rubikloud’s SaaS-based ML offerings empower retail and CPG manufacturers to transform their core operations by improving and automating complex, profit-generating decisions. Rubikloud’s proven AI capabilities and intuitive tools enable users to leverage disparate data sources to improve forecast accuracy, site-level allocations, inventory availability and promotion plans by allowing users to run boundless simulations in real time.

    “We founded Rubikloud with the belief that purpose-built AI could be used to solve some of the most complex industry problems and we have spent the last seven years building a fantastic product that receives validation from global customers every day,” said Kerry Liu, CEO, Rubikloud. “We’re excited at the prospect of joining Kinaxis, which helps us bring our innovations to a much broader customer base at a faster pace than on our own. Not only that, being two strong Canadian companies we see great cultural synergy and look forward to working on the complex problems we know RapidResponse and concurrent planning can solve for customers.”

    Terms of Agreement
    Kinaxis will acquire Rubikloud for US$60 million in an all-cash transaction that is expected to close within 60 days. Based on Rubikloud’s current revenue and expense profile, the company’s fiscal 2020 revenue and Adjusted EBITDA guidance, as reiterated in its May 6, 2020 news release, remains unchanged. The transaction is subject to customary closing conditions.

    About Kinaxis Inc. 
    Everyday volatility and uncertainty demand quick action. Kinaxis® delivers the agility to make fast, confident decisions across integrated business planning and the digital supply chain. People can plan better, live better and change the world. Trusted by innovative brands, we combine human intelligence with AI and concurrent planning to help companies plan for any future, monitor risks and opportunities and respond at the pace of change. Powered by an extensible, cloud-based platform, Kinaxis delivers industry-proven applications so everyone can know sooner, act faster and remove waste. For more Kinaxis news, follow us on LinkedIn or Twitter.