Senior Health Care At Center of Partners' Decision To Merge

Two Canadian solution providers have joined forces to supply the information technology demands of the growing market for senior citizens' health-care needs, the firms announced Monday.

TUC Managed IT Solutions, based in Ottawa, Ontario, and CareWorx Inc., based in the Toronto suburb of Orangeville, are coming together under the CareWorx brand. Founded in 2006, TUC has between 51 and 200 employees and annual revenue of about $27 million, according to Computer Dealer News. CareWorx employs between 11 and 50.

The merger is being funded by venture capital, led by Wellington Financial, based in Toronto, and supported by the health-care fund of EPIC Capital Management, also based in Toronto. No details about terms and conditions regarding the merger were released in the statement.

[Related: IDC: Federal, Health-Care And Retail Mobile Spending Will Drive Channel Opportunities]

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"TUC and CareWorx have been working very closely since November 2014 -- strategically, taking our partnership to the next level just made sense," TUC CEO Mark Scott, who will be CEO of the merged company, said in a statement announcing the deal. "Together we saw new opportunities emerging in this market set to explode over the next decade."

TUC -- No. 425 on CRN’s 2015 Solution Provider 500 list -- is a managed services provider to small and medium-size organizations.

CareWorx provides point-of-care, electronic medical administration records, mobile computing and wireless networking hardware for use with electronic health record software applications in the senior care market.

Under the CareWorx brand, the merged entity will establish managed services and senior care divisions to support all customers of both companies, the statement said. Using a "channel first" strategy, the managed services group will offer its services while focusing specifically on expanding its midmarket and health-care customer bases, the companies said.

As the baby boomers in the United States age -- the eldest of that generation turn 70 years old in 2016 -- the ranks of senior citizens are swelling. According to U.S. census data, the percentage of the U.S. population age 65 and up is expected to increase from 13 percent in 2010 to nearly 21 percent by 2050.

"Our products and services affect how more than 500,000 senior care workers impact the lives of over half a million residents daily," added Mark Tomzak, former CEO of CareWorx, who will be president of the merged company, focusing on the senior care division. "Our goal is to help senior care facilities strategically plan what technology best meets their needs, help them get the most out of it, and ensure they have the support they need when they need it,’ allowing them to focus on caring for their residents.