The Canadian-based company WELL Health Technologies Corp. (TSX.V: WELL) went on an acquisition spree in 2020, adding a plethora of smaller, digital health companies to build up its product portfolio. Last week, they continued that spree, announcing the acquisition of Intrahealth, a Vancouver-based healthcare software company. Intrahealth provides a suite of flexible software and electronic medical record solutions to a wide variety of customers including health authorities, hospitals, public health outpatient centers, community health, home care, ambulatory care and diverse health care professionals.
WELL Health paid roughly CAD 15.4 million consisting of CAD 10.6 million in cash, CAD 3.85 million in common stock and CAD 866,250 in holdbacks. This converts to roughly U.S. $12.16 million. They will also pay up to CAD 3.85 million in earn-outs payable in cash or WELL common shares at the election of WELL and subject to adjustment based on achievement of annual recurring revenue targets of Intrahealth on a post-closing basis.
Ending March 2021, Intrahealth had approximately a 12-month revenue of $7.1 million and $1.42 million in EBITDA.
Over 80% of Intrahealth’s revenue is high margin recurring revenue. Intrahealth will help the WELL EMR Group as it will transition the business unit from solely providing OSCAR EMR services to being a provider of multiple EMR product offerings in global markets. WELL also anticipates integrating Intrahealth to the apps.health marketplace in the coming months, paving the way for third-party app developers to have their digital health applications available on both OSCAR Pro and Intrahealth platforms.
WELL Health is having a busy first quarter. In early February, the company announced the acquisition of CRH Medical Corporation (NYSE: CRHM), which provides physicians with innovative services and products for the treatment of gastrointestinal diseases. CRH serves 69 ambulatory surgical centers in 13 states. The purchase price came out to be $292.7 million.