Circle Medical opened a software development center in Montreal

The co-founders of Circle Medical, Jean-Sébastien Boulanger and George Favvas. (Photo: Courtesy)

California -based Circle Medical, founded five years ago by two Quebecers, is opening a software development center in Montreal as part of a transaction with British Columbia telemedicine company Well Health Technologies.

Well Health (WELL, $ 6.45) actually acquired a majority stake in Circle Medical worth 14 million US dollars, or approximately 18.5 million Canadian dollars.

Of this amount, a portion of US $ 5M will be paid in cash, while the rest of the US $ 9M will be made through the exchange of shares.

Upon completion of the transaction, Well Health will own between 56% and 60% of Circle Medical and will have the exclusive rights to use and market the latter’s technology platform in Canada.

Thanks to this agreement, Well Health will enter the United States. The Canadian company has made a private placement of $ 23 million to finance the transaction and to expedite its deployment in the United States, a press release said.

For Circle Medical, the advantage of this transaction is to raise capital to accelerate its growth, not to mention the possibility to market its platform in Canada. “In the transaction, we also opened a software development center in Montreal. We already have five employees there and want to hire a total of 50 people in three years, ”said George Favvas, CEO and co-founder of the company.

The manager specified that the Montreal office would be the “second headquarters” for Circle Medical, which is based in San Francisco. “Excluding medical personnel, our future recruitment will primarily take place in Montreal,” he said.

Circle Medical currently has approximately thirty employees, including those in Montreal.

Mr. stands. Favvas said the decision to open an office in Montreal was based on the qualified labor pool “at the intersection between technology and the medical sector”, thanks among other things to the city’s two university hospitals.

The opening even came as a nice surprise for company executives: “One who applied for the job was a nurse practitioner in the United States. She followed her husband to work in Canada. Her qualifications are not recognized in Quebec, but she could be a virtual practitioner who sees American patients while working from Montreal. It’s something we didn’t expect, but it shows that international borders are becoming less important, ”Favvas said.

Significant changes in patient habits

With the COVID-19 pandemic, Circle Medical was forced to adapt to new market realities, with two physical clinics in San Francisco in addition to its telemedicine service offer.

“Before COVID-19, only 10% of our appointments were made mostly to doctors and the majority of clients went to the clinic. Since COVID-19, 86% of our appointments have been virtual and instead serve only the San Francisco area, we have expanded our offer to 35 states, ”said George Favvas, who has the ambition to cover shortly. the entire United States.

The leader said that at the beginning of the pandemic, Circle Medical closed its clinics and experienced an 80% decrease in revenue. The company then decided to promote virtual tours and thus recovered all its revenue and even a little more.

“In January, the company generated revenue at the rate of US $ 4 million per year. We had a trough at the beginning of the pandemic and there, with the transition to virtual, our revenues rose at the rate of US $ 5 million annually. years, “he confessed.

According to Mr. Favvas, the pandemic forced the company to be more creative and find ways to conduct remote medical consultations for non-emergency needs or preventive examinations. “COVID-19 forced us to rethink a few things and a good portion of the changes in habits will remain after the pandemic,” he believes.

Today, the company conducts approximately 2,000 consultations per month.

Also read:

Start-up: Circle Medical raises US $ 3.5M in funding

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