HEALWELL AI announced on January 25 that it is acquiring 100% of the shares outstanding of Intrahealth from WELL Health Technologies for a total consideration of approximately $24.2 million. A majority of the consideration is expected to be paid in HEALWELL Class A subordinate voting shares. The transaction is expected to close on or about February 1, 2024.
Intrahealth is a privately held company that develops, licenses, supports and sells electronic health record (EHR) software, medical practice management software and related services. The company provides services to small and medium enterprise healthcare organizations across Canada, Australia and New Zealand. Founded in 1979 in New Zealand and headquartered in Vancouver, Canada, Intrahealth was originally acquired by WELL Health in April 2021 for approximately $12.2 million USD ($15.4 million CAD). Intrahealth supports approximately 15,000 healthcare professionals across its global network.
According to the original deal press release, Intrahealth expects to generate more than $12 million in revenues during 2023, achieve more than 80% gross margins, produce positive EBITDA and increased cashflows. Approximately 70% of Intrahealth’s revenue is generated in Canada and more than 80% of its revenue is high-margin recurring revenue.
HEALWELL AI is a healthcare technology company focused on AI and data science for preventative care. Its mission is to improve health care and save lives through early identification and detection of disease. As a physician-led organization with a management team of experienced executives, HEALWELL AI is executing a strategy centered around developing and acquiring technology and clinical sciences capabilities that complement the company’s road map. According to its financial report for the fiscal year (FY) 2022, HEALWELL AI generated approximately $41 million in revenue for FY 2022, and $11 million in EBITDA.
Grant Thornton LLP provided an opinion to the independent directors of HEALWELL AI that the consideration to be paid by HEALWELL AI to WELL Health for the shares of Intrahealth is fair, from a financial point of view.
According to data captured in the LevinPro HC database, this transaction represents the 29th eHealth acquisition of 2024, and the fourth in the EHR specialty. During 2023, there were 273 eHealth and 15 EHR transactions announced. In December 2023, HEALWELL AI acquired a majority ownership position in Pentavere Research Group for an undisclosed price.
