LX Ventures announced this week that it has signed a term sheet for the acquisition of Sosido Networks for stock consideration of approximately $292K. Based in Vancouver, Sosido is an online knowledge exchange network for professional healthcare associations.
LX Ventures Inc. (TSX VENTURE:LXV) (“LXV” or the “Company”) and Sosido Networks Inc. (“Sosido”) are pleased to announce that LXV has entered into a term sheet to acquire Sosido.
Sosido is an online knowledge exchange community for physicians, nurses, pharmacists and other healthcare professionals. It uses innovative technology to connect and filter knowledge through trusted colleagues, creating a unique communication platform that revolutionizes the way health care professionals share information and collaborate with each other.
Sosido successfully completed their beta rollout last year and have recently commercialized their platform. With an estimated four million healthcare professionals in North America alone who directly influence $1 trillion in healthcare spending annually, Sosido is addressing a large and disruptable market opportunity.
The HealthTech sector as a whole has recently seen a dramatic increase in investment to drive innovation around specific themes. Last month, Nike announced the 10 companies participating in the first class of its TechStars-powered accelerator for health and fitness-related startups. Earlier this year, GE announced a partnership with Startup Health to invest in consumer health startups.
LX Ventures plans to quickly expand and improve upon the Sosido platform to drive user acquisition and revenue growth. “The acquisition of Sosido brings significant synergies to the LXV group. The management team of Sosido, with its strong domain experience, fits perfectly into the expansion strategy for LXV’s HealthTech division. Sosido has recently commercialized and is seeing strong growth of its platform and users, so the timing of the acquisition is ideal for LXV,” said Mike Edwards, CEO of LX Ventures.
Tanis Steward, Founder and CEO of Sosido, said, “It’s exciting to become part of LXV. Their team has the skills and experience to continue to accelerate the expansion of Sosido by leveraging our sector expertise, while further refining our technology and improving our users’ experience.”
LXV has an exclusive period within which to finalize a definitive agreement. This acquisition is expected to close within the first two weeks of May, 2013. Consideration for the acquisition is contemplated to be 1,166,000 LXV common shares at a deemed price of $0.25 per LXV share.
About LX Ventures Inc.
LX Ventures is a publicly traded incubator that launches, integrates, and acquires early stage high growth technology companies. We are a group of entrepreneurs dedicated to developing the next generation of entrepreneurs by providing funding, resources, mentorship, and access to our global network. We are in the business of building businesses. Our approach is twofold: we either partner with existing companies to assist with distribution and scaling or we internally innovate from idea generation through to launch and exit. For further information about LX Ventures, its technology, collaborations and partnerships, please visit: www.lxventures.com.
ON BEHALF OF THE BOARD
LX VENTURES INC.
Mike Edwards, President & CEO
Photo courtesy of Shutterstock.