Proving the Business Case for the Internet of Things

Biosign expands healthcare tech offering with Meck takeover

Iain Morris
July 9, 2014
 
Remote patient monitoring specialist Biosign says it has closed its acquisition of a majority stake in German cloud provider Meck Medical – a move aimed at broadening its portfolio of healthcare technology services.

Biosign (Mississauga, Canada) unveiled plans to acquire a 51% stake in Meck (Klingenberg, Germany) in June for a cash payment of €875,000 ($1.19 million) and the issuance of three million common shares.

In its more recent statement, Biosign indicated it had secured an “arm’s length, unsecured demand loan” of €1.2 million to finance the cash portion of the purchase price.

It has also agreed to provide a loan to Meck of up to €100,000 per month – to a maximum of €2.4 million – in order to fund operations.

Set to mature in five years, the loan will bear interest at a rate of 5.75% per annum, and Meck is required to have a reserve pool of not less than €50,000 at all times.

As a result of the Biosign takeover, Meck has already agreed to pay a co-founder a sum of €1 million over a two-year period from August this year to acquire intellectual property.

Meck’s cloud platform supports a range of healthcare software solutions, including facility, document and prescription management; wound management; and social networking.

Meck generates revenues from recurring license fees for each facility installation on a per-patient basis, as well as from the sale of prescriptions and services provided directly to consumers.

The company’s services are used by a number of German healthcare facilities but Biosign expects to see take-up of the platform increase substantially thanks to a framework contract with Caritas, which operates nursing home and extended care facilities throughout Germany.

It plans to operate Meck as part of Biosign Technologies, its wholly owned European subsidiary, which is also based in Germany.

Speaking about the acquisition in June, Robert Kaul, Biosign’s chief executive, described the companies’ offerings as “synergistic”.

“Meck brings us modules such as wound management and prescription management, while, in turn, Biosign can provide Meck customers with remote patient monitoring … [and] medical devices,” he said.
 
 
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