European medicinal cannabis company, Kanabo (LSE: KNB) has purchased GP Service, a private telemedicine and online primary healthcare service provider in the UK.
The deal is worth £14 million ($18.9 million).
Kanabo, which focuses on developing and distributing medical cannabis and CBD products, has also successfully completed a £2.25 million fundraising via its broker, Peterhouse Capital Limited.
The company’s acquisition of GP Service will facilitate rapid growth of existing GP digital and telemedicine business and establish a new and fully compliant channel to market for Kanabo’s products.
GPS is an approved provider on the NHS digital framework for video and online consultations and is able to able to electronically deliver prescriptions to a network of 4,200 pharmacies including major high street chains and independent pharmacies.
Kanabo intends to develop the GP Service platform to become one of Europe’s first digitally-led and legally compliant providers for Kanabo’s products and wellness CBD services following regulatory approval.
The global telemedicine market is forecast to grow by 23% to $14.9 billion by 2024 and the UK market for private virtual GP services is estimated to be worth approximately £1 billion.
"Today’s acquisition of the GP Service is part of our strategy to use M&A alongside organic growth to build a pan-European company, and to offer help to millions of consumers and medical patients for conditions including chronic pain, anxiety and central nervous system diseases," Avihu Tamir, founder and CEO of Kanabo said.
“We are very much looking forward to working with the highly skilled team at GP Service to support the growth of their business in the rapidly growing telemedicine market in the UK and beyond.”
Atul Devani, CEO of GP Service added: “We have invested heavily in our core systems and technologies to provide patients with treatment or advice following a remote video or with a GMC Registered Doctor and have successfully built one of the leading primary care telemedicine companies in the UK. With further support and investment from Kanabo we look forward to expanding our core service to cover a range of other medical conditions and further enhance our electronic prescription offerings in the coming months across a number of territories.”
