Loblaw Comapanies Ltd next move is looking to acquiring Kelowna’s QHR Corp, a developer of electronic medical record technology. The company is looking to put forth $170 million cash to compliment their 2014 Shoppers Drug Mart purchase.
In October, QHR’s shareholder meeting will take place to approve the deal, though the deal has already been approved by QHR’s board of directors. QHR CEO Mike Checkley said “We weren’t out to sell the company,” sharing that “What came across the table we felt was very fair and we feel this is absolutely the right arrangement for us and our customers.”
Having the deal go through would mean Loblaws would gain 7,000 healthcare providers, along with a suite of electronic medical records technology, all worth approximately $350 million per year, according to Cantor Fitzgerald analyst Ralph Garcea.
The company is hopeful the acquisition will in the long term make its patient care more efficient, and allow it to work with more health care providers beyond the pharmacy niche
says Loblaw spokesperson Tammy Smitham.
The Shoppers acquisition gave Loblaw the opportunity to find a place in areas big-box retailers can’t access, like urban neighbourhoods. The company’s overall revenue has grown by two per cent to 10.7 billion with a year.
