“The proposed acquisition of Intrahealth expands Well into a multiproduct EMR company that can service small primary health care clinics right up to large hospitals and health authorities…we are very excited about the prospect of initially expanding our global footprint into New Zealand and Australia through this acquisition and pursuing further global expansion. Intrahealth is a highly complementary acquisition which will be immediately accretive to Well’s revenue and profitability,” said Hamed Shahbazi, chairman and chief executive officer of WELL
Well Health has agreed to acquire all issued and outstanding shares of Intrahealth for a total consideration of approximately $19.25-million. WD Capital Markets, a Toronto-based merger and acquisition advisory firm, is adviser to Intrahealth and arranged the transaction with Well Health. The transaction itself consists of:
- $10,683,750 payable in cash on the closing date, subject to standard closing adjustments
- $3.85-million Well Health common shares issuable upon the closing date at the five-day volume-weighted average trading price prior to closing of the transaction
- a holdback of $866,250 payable by Well Health in cash within 90 days after closing date, subject to working capital adjustment
- up to $3.85-million payable by Well Health as a three-year time-based earnout payable in cash or Well Health common shares at the election of the Company. Subject to adjustment based on achievement of annual recurring revenue targets of Intrahealth on post-closing basis
Intrahealth serves as a provider of enterprise class electronic medical records (EMR) and clinical health care software. They work with various customers located in Canada, New Zealand and Australia. Furthermore, via its databases spanning across its global network, Intrahealth supports roughly 15,000 clinicians that provide care for millions of patients.
“We are very pleased with the prospect of joining Well Health, as this will allow us to continue to serve our customers and enhance our product offering while being a part of the larger Well Health ecosystem and shared services platform. We believe there are many synergies and cross-selling opportunities with Well’s broader product offerings being made available to all Intrahealth customers,” commented Dr. Mark Matthews, chief executive officer of Intrahealth
Well Health’s acquisition of Intrahealth will enable the Company to provide a variety of EMR products in global markets rather than strictly Oscar EMR services. Additionally, Well Health hopes to integrate Intrahealth into the digital health scene. In doing so, the Company will be paving the way for third party developers to have their apps available on both Oscar Pro and Intrahealth platforms.
Following the acquisition’s closing, Intrahealth is anticipated to continue operating as an independent business within the Well Health EMR Group. The business will continue to be operated by Dr. Mark Matthews, its current CEO. With this in mind, The proposed acquisition represents a milestone for Well Health EMR Group as it continues to expand its market to a greater level by restructuring to a multiproduct business.
Well Health’s stock price climbed to a high of $8.19 and currently sits at $7.85.
Disclosure: Well Health is a client of Equity Guru.