HEALWELL AI Inc. (TSX: AIDX, OTCQX: HWAIF), a company focused on the healthcare artificial intelligence sector, has announced a significant step towards expanding its influence in the industry by acquiring Orion Health Holdings Limited. This acquisition, valued at approximately $165 million CAD, is set to transform HEALWELL into a formidable leader in healthcare data interoperability and artificial intelligence.
The agreement entails HEALWELL purchasing 100% of Orion Health, a New Zealand-based company renowned for its subscription-based software solutions that enhance data interoperability and healthcare navigation. Orion Health serves over 70 clients globally, impacting approximately 150 million lives. The acquisition is expected to generate over $100 million CAD in revenue and more than $20 million CAD in EBITDA for Orion Health in 2025, bolstering HEALWELL’s financial profile significantly.
HEALWELL will fund the acquisition through a combination of cash and stock, with an upfront payment of approx. $144 million CAD, $86 million in cash and the remainder in shares. Additionally, there is a performance-based earnout of $20.5 million CAD tied to Orion Health’s future performance. This strategic move is supported by a concurrent financing initiative, which includes a bought deal private placement aiming to raise $50 million CAD.
The integration of HEALWELL’s advanced AI capabilities with Orion Health’s established platforms, Amadeus and Virtuoso, promises to unlock new avenues for innovation in population health management and clinical research. Both platforms are recognized for their ability to streamline healthcare workflows and improve patient outcomes. Amadeus consolidates patient data across various care settings, while Virtuoso enhances patient engagement through an integrated digital experience.
Hamed Shahbazi, Chairman of HEALWELL, emphasized that this acquisition not only enhances HEALWELL’s operational capacity but also aligns both companies’ missions to revolutionize healthcare through AI and data-driven solutions. The merger is anticipated to create substantial revenue synergies and operational efficiencies, positioning HEALWELL as a cash-generative entity poised for future growth.
Orion Health’s robust presence in key markets such as Australia, New Zealand, the UK’s NHS, and North America complements HEALWELL’s strategic objectives. With existing contracts in Ontario and Alberta, the integration will facilitate deeper penetration into public health sectors, supported by Orion Health’s established relationships with government entities.
Brad Porter, CEO of Orion Health, noted that this partnership marks a pivotal moment for both organizations, enhancing their capabilities to meet unmet health needs on a larger scale. The combination of Orion Health’s expertise in population health management with HEALWELL’s AI technology is expected to lead to groundbreaking advancements in healthcare delivery.
The acquisition aligns with HEALWELL’s long-term strategy of leveraging technology to improve healthcare outcomes through early disease detection and enhanced clinical decision support systems. Dr. Alexander Dobranowski, CEO of HEALWELL, expressed optimism about the combined potential of both teams working together to redefine healthcare possibilities globally.
As HEALWELL prepares to finalize this transaction by April 2025, pending regulatory approvals, the company is set to embark on a new chapter that not only amplifies its market presence but also reinforces its commitment to driving innovation in healthcare technology.
HEALWELL’s acquisition of Orion Health represents a strategic milestone that positions the company at the forefront of healthcare technology innovation. By merging resources and expertise, both organizations are poised to deliver enhanced solutions that could significantly improve patient care and operational efficiencies across global health systems.
