Well Health To Acquire MyHealth For $266.3 Million

WELL Health Technologies Corp. (TSX: WELL) today announced that it has entered into a definitive share purchase agreement to acquire all the issued and outstanding shares of MyHealth Partners Inc. The transaction is valued at approximately $206 million, excluding an earn-out provision.

MyHealth is currently focused on providing primary care, specialty care, telehealth and diagnostic services across Ontario. The firm reportedly has annual proforma revenues of $100 million, with EBITDA margins currently sitting at 20%. The firm operates much the same as Well, given that it has conducted 25 acquisitions over eight years, focusing on both organic and inorganic growth.

When combined with Well’s numerous telehealth businesses, the acquisition is expected to make Well Health the leading multi-disciplinary telehealth service provider in Canada.

Under the terms of the transaction, assuming the full earn-out provision being met, Well is to pay $266.3 million in consideration. Consideration is to consists of $82 million in cash, $94.3 million in shares at a price of $9.80 per share (a 38.1% premium to current volume weighted price of the equity), a convertible promissory note to the tune of $30 million, and an earnout provision of $60 million.

Once the transaction is finalized, Well expects its revenue run rate to “approach” $400 million, while EBITDA is expected to be near $100 million.

WELL Health Technologies Corp. last traded on the TSX at $7.17.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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