HEALWELL to Acquire Orion Health, Creating a Global Market Leader in Healthcare Data Interoperability & Artificial Intelligence, and Launches $50 Million Bought Deal Financing

In This Article:

  • HEALWELL AI has entered into an agreement to acquire 100% of the shares of Auckland, New Zealand based Orion Health Holdings Limited (“Orion Health”), a subscription license and services revenue business serving marquee public sector clients globally with data interoperability and healthcare navigation products and services.

  • The two organisations are perfectly aligned on a combined mission to revolutionize healthcare through AI and data-driven innovation positioning HEALWELL as a global leader in healthcare technology. The integration of HEALWELL’s AI into Orion Health’s Amadeus and Virtuoso platforms is highly synergistic, unlocking new opportunities in population health management, clinical research and preventative care.

  • Orion Health1 has close to 400 employees with offices in 11 countries globally. Its software solutions currently support over 70 public and private sector customers representing a population of 150 million lives world-wide. Orion Health1 is expected to generate over $100m CAD in revenues mostly from subscription license and services and over $20m CAD in EBITDA2 in calendar 2025.

  • HEALWELL will pay approximately $144m CAD upfront of which a minimum of $86m CAD will be paid in cash and the balance will be paid in HEALWELL stock in addition to $20.5m CAD in a 3-year performance earnout to acquire Orion Health. The cash portion of the acquisition price will be partially funded by a bought deal private placement of convertible debentures and subscription receipts co-led by Eight Capital and Scotiabank for gross proceeds of $50m CAD (the “Offering”), with the balance expected to be covered with debt provided by a Schedule 1 bank.

  • J.P. Morgan acted as financial advisor to HEALWELL on the acquisition.

TORONTO, Dec. 16, 2024 (GLOBE NEWSWIRE) -- HEALWELL AI Inc. (“HEALWELL” or the “Company”) (TSX: AIDX, OTCQX: HWAIF), a healthcare artificial intelligence company focused on preventative care, is pleased to announce that it has entered into an agreement to acquire 100% of the shares of Auckland, New Zealand based Orion Health Holdings Limited, a subscription license and services revenue business serving marquee public sector clients globally with data interoperability and healthcare navigation products and services after the concurrent divestiture of Orion Health’s divisions that are non-strategic to HEALWELL, for total consideration of $200m NZD or $165m CAD (the “Transaction”). The acquisition of Orion Health and concurrent divestment of non-strategic divisions will represent a transformative milestone in HEALWELL’s journey to become a global leader in healthcare technology and artificial intelligence. Orion Health is expected to generate revenue of more than $100m CAD with EBITDA2 of over $20m CAD in calendar 2025.