As the Canadian tech sector navigates some tough headwinds, health-records company PointClickCare Technologies continues to sail forward.
The valuation of the privately held company – a member of Communitech’s Team True North roster – has jumped to more than US$5 billion, up from US$4 billion in early 2021, the company confirmed this week.
The increase is based on a recent shuffling of share ownership in which private equity firm Hellman & Friedman LLC and JMI Equity, both headquartered in the United States, increased their existing stakes in PointClickCare by purchasing shares from early investors and employees.
The company itself did not receive any new investment.
PointClickCare was founded in 1995 by brothers Mike and Dave Wessinger. The company’s software, aimed at senior-care facilities and hospitals, enables the cloud-based, real-time sharing of electronic health records (EHR) among multiple care providers. In addition, the company provides financial performance and business intelligence software for health-care organizations.
PointClickCare is one of the largest private Canadian software vendors. Its EHR platform is used by more than 27,000 long‐term care providers and 2,700 hospitals in North America.
A profitable company, PointClickCare has annual revenue of more than US$500 million and has been growing at about 20 per cent a year, Executive Chair Mike Wessinger confirmed in an email exchange with Tech News.
Despite a challenging economy, the company has hired more than 500 new staff this year and currently employs 2,100 people.
“Growth is important, but we aren’t getting distracted by market swings,” Wessinger said. “At PointClickCare, we will continue to be thoughtful and think of our company as a growth-oriented organization – striking a good balance between growth, earnings and (the) future.”
PointClickCare was one of 35 Canadian tech companies named to Communitech’s inaugural Team True North in June. The data-driven initiative aims to identify, support and celebrate Canadian private companies that have the highest probability of reaching $1 billion in annual revenue by 2030. In addition to positive financial data, eligibility includes global ambitions and a commitment to “tech you can trust,” a major differentiator for Canadian companies in international markets.
“We are honoured that Communitech recognized our value and growth trajectory as a driver in the success of the Canadian tech scene,” Wessinger told Tech News. “For years we have partnered closely with Communitech to ensure top Canadian tech talent stays and thrives in the region – something imperative to driving Canada’s innovation economy. Now more than ever, it is important for our broader technology ecosystem to work together and ensure new talent is joining our Canadian workforce to grow at scale.”