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

Dec 16, 2024 - financialpost.com
HEALWELL AI Inc., a healthcare artificial intelligence company, has announced an agreement to acquire Orion Health Holdings Limited, a New Zealand-based company specializing in data interoperability and healthcare navigation products. The acquisition, valued at approximately $165 million CAD, aims to position HEALWELL as a global leader in healthcare technology by integrating its AI capabilities with Orion Health's platforms, Amadeus and Virtuoso. This strategic move is expected to enhance HEALWELL's offerings in population health management and preventative care, expanding its reach to over 150 million lives globally.

The acquisition will be financed through a combination of cash, HEALWELL stock, and a $50 million CAD bought deal private placement co-led by Eight Capital and Scotiabank. The transaction is anticipated to close by April 1, 2025, subject to regulatory approvals. Orion Health's existing customer base, including major public sector clients in countries like Canada, the UK, and Australia, will provide HEALWELL with a significant platform to deliver its AI-driven solutions. The deal is expected to generate substantial revenue synergies and operational efficiencies, further strengthening HEALWELL's financial profile and growth potential.

Key takeaways:

Here are four key takeaways from the article:```html
  • HEALWELL AI has entered into an agreement to acquire 100% of the shares of Orion Health Holdings Limited, aiming to revolutionize healthcare through AI and data-driven innovation.
  • The acquisition is valued at approximately $165 million CAD, with HEALWELL paying a combination of cash and stock, and includes a performance earnout.
  • Orion Health's software solutions currently support over 70 public and private sector customers globally, representing a population of 150 million lives.
  • The acquisition will be funded through a combination of a $50 million CAD bought deal private placement and senior bank debt, with J.P. Morgan acting as financial advisor to HEALWELL.
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