The digital health provider WELL Health Technologies Corp. has announced a new deal for Silicon Valley-based wisp, Inc. (WISP). WELL Health is a prolific strategic buyer in the healthcare M&A market (20 deals over three years) and has a robust network of clinics and telehealth operations in British Columbia, but has been making moves in the United States recently. The deal for WISP is valued at approximately $41 million, comprised of $27.7 million in cash and $6.2 million in WELL Health shares. WELL Health is acquiring roughly 53% of WISP, and the transaction includes a multi-year performance earnout up to a maximum of $7.4 million.
WISP is a leading national provider of telehealth and e-pharmacy solutions specializing in Women’s Health, delivering solutions for female reproductive and sexual health ailments to patients across all 50 states in the United States. It has served more than 20,000 patients to date. WISP’s current annual revenue run-rate is approximately $30 million and represents greater than 100% YoY organic growth. The company has gross margins exceeding 65% and achieved positive EBITDA over the last few quarters.
With the acquisition of WISP, WELL is building on its U.S. telehealth presence, having previously entered the market with the majority stake acquisition of Circle Medical in September 2020 for $14 million. Combined with Circle Medical, WELL is approaching $45 million in its current U.S.-based telehealth revenue run-rate.
D.A. Davidson is serving as WISP’s exclusive financial advisor and Goodwin Proctor LLP is acting as legal counsel to WISP. Dentons Canada LLP and Dentons US LLP are acting as legal counsel to WELL.
