Canada’s Dialogue shuts down OHS service in Germany

Dialogue, a Canadian health and wellness virtual healthcare platform, is divesting itself of its occupational health and safety service in Germany.

The transaction was expected to close on or before Dec. 31, 2022, subject to the satisfaction of customary closing conditions.

Dialogue entered the OHS market in Germany with the acquisition of ARGUMED Consulting Group GmbH in January 2020 and grew the segment steadily since then, it said.

Following a normal course strategic review of its product roadmap, the company identified the OHS business as a non-core asset that does not fit within Dialogue’s integrated platform strategy and does not feature the high scalability the Company seeks for international market growth.

“Our core digital business in Canada is seeing robust growth in excess of 50 per cent this year and benefitting significantly from the close integration of all our services. We are also confident in our strategy to grow our international business through high-margin and highly scalable services like our Wellness and iCBT programs,” said Cherif Habib, Chief Executive Officer of Dialogue.

“We will continue to invest in our IHP and in complementary services to drive superior outcomes for our members, customers, and partners. As we start the new year, I’m excited about the opportunities ahead.”

In the 12-month period ending Sept. 30, 2022, the OHS business generated revenue of $4.7 million and an adjusted EBITDA loss of $1.8 million. The sale also advances Dialogue on its path to break even EBITDA by the end of 2023, it said. As of the fourth quarter of 2022, the OHS business will be classified as discontinued operations for current and comparative periods in the company’s consolidated financial statements.