WELL Health Technologies (TSX: WELL) continued with its expansion by acquisition strategy this morning, with the firm announcing it will be acquiring ExecHealth. ExecHealth, whom is a provider of primary care as well as executive health services in Ontario, represents the first clinical assets purchased by the firm in the province.
The primary care provider is focused on the niche category of corporate and executive health, primary care and integrated services, which includes specialized services for corporations. The move is part of the strategy to branch into the corporate and executive health segment, as part of a follow-on to the acquisition of ExcelleMD in Quebec.
With over half of all patient visits conducted via telehealth services, the firm currently has unaudited revenues of $3.0 million for the twelve month period ended February 28, 2021. EBITDA margins are reportedly greater than 50% on those revenues as well.
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Under the terms of the transaction, ExecHealth is to pay up to $12.6 million for the firm provided all performance-based earn-out terms are met. Upfront payment of $6.5 million in cash and $4.2 million in common shares is to be issued at the time of closing, while $1.9 million is to be paid out over a multi-year period based on performance.
The transaction is currently slated to close in May 2021.
WELL Health last traded at $7.54 on the TSX.
Information for this briefing was found via Sedar and WELL Health Technologies Corp. 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.
