Doximity, a networking platform for healthcare professionals, has entered into an agreement to acquire on-call physician scheduling and messaging app Amion.
According to a filing with the Securities and Exchange Commission, the deal will set Doximity back $53.5 million in cash at the time of closing, plus an earnout consideration of up to $24 million subject to performance.
The company will also give around $5 million worth of restricted stock units to some employees joining Doximity. The deal is expected to close in early April.
“We’re excited to partner with founder Stuart Karon and the Amion team to expand our physician cloud platform,” Jeff Tangney, CEO cofounder of Doximity, said in a statement. “Scheduling enhances our collaboration suite and will grow engagement across all our businesses.”
WHY IT MATTERS
In a call with investors, Tangney noted the deal was largely a product acquisition for them, but Amion also included a valuable subscription business. Doximity said Amion manages more than 200,000 physician schedules at thousands of hospitals.
Knowing who’s on call is also important to physician workflow, and the capability will add to Doximity’s suite of tools.
“Strategically, Amion adds a key piece to our physician cloud by integrating scheduling alongside our secure messaging, CVs, referrals and telehealth tools,” Tangney said.
THE LARGER TREND
Doximity also announced its financial results for its third quarter ended December 31, 2021. The networking company recorded revenue of $97.9 million, compared with $58.7 in the same period last year.
Doximity reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $47 million, a 119% increase year-over-year from $21.5 million.
The company went public last year, valued at nearly $7 billion, when the company debuted in late June and its shares opened more than 58% above their offer price. In April, Doximity added telehealth features to its offering.
The Amion deal isn’t the company’s first acquisition either. In 2020, Doximity purchased THMED, a healthcare-staffing firm. It was rebranded as Curative and focuses on “personalized search” to connect employers and healthcare workers.