HEALWELL AI to Acquire Intrahealth to Create Next Generation AI Powered EHR

HEALWELL enters into agreement to acquire Intrahealth, a SaaS based enterprise class multi-national EHR (Electronic Health Record) provider supporting approximately 15,000 clinicians providing care for millions of patients from small clinics to large health delivery organizations in its global network across Canada, Australia and New Zealand

HEALWELL AI Inc., a healthcare technology company focused on AI and data science for preventative care, is pleased to announce that it has entered into an agreement to acquire Intrahealth Systems Limited, a subsidiary of WELL Health Technologies Corp., which is an insider of the Company, pursuant to an arm’s length negotiated transaction for total consideration of approximately $24.2 million (the “Transaction”), a majority of which is expected to be paid in HEALWELL Class A subordinate voting shares. Intrahealth is an advanced SaaS-based Electronic Health Records (“EHR”) management platform for small and medium enterprise healthcare organizations across Canada, Australia, and New Zealand. Intrahealth’s robust platform meets the demands of a wide range of clients from a single doctor’s office to a multi-thousand user health institution. Founded in New Zealand and headquartered in Vancouver, B.C., Intrahealth was originally acquired by WELL in April 2021.

The independent directors of the Company have unanimously approved the Transaction, with the directors appointed by WELL recusing themselves from voting. Grant Thornton LLP, as independent financial advisor, also provided an opinion to the directors that, as of today’s date, and based on and subject to certain assumptions and limitations that they made, that the consideration to be paid by the Company to WELL for the shares of Intrahealth is fair, from a financial point of view, to the Company.

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Dr. Alexander Dobranowski, CEO of HEALWELL, commented on the acquisition, “Intrahealth is a highly respected global EHR with a rich history of supporting major health systems in three countries across two continents. Intrahealth will not only add mature SaaS and digital revenue, strong positive EBITDA and cashflows, but it will also serve as a platform to showcase the effectiveness of our industry leading AI solutions. Our firm belief is that the future of healthcare will be centered around AI enabled EHRs due to the enormous potential scope to positively impact healthcare providers and their patients. EHR systems that are not outfitted with AI capabilities either natively or through an AI powered clinical decision support system will not be able to retain their customers in the future. This presents an enormous market opportunity for companies such as HEALWELL who have the technology to drive this industry forward.”

Hamed Shahbazi, Founder and CEO of WELL stated, “When Intrahealth was acquired by WELL nearly three years ago, the intent was to enable Intrahealth to grow and expand. We achieved that goal and now Intrahealth enters the next stage of its development which we feel will be best achieved through pairing it more deeply with the HEALWELL platform. We believe the combination of HEALWELL’s best-in-class AI capabilities combined with Intrahealth’s EHR platform will result in the creation of one of the industry’s first AI powered EHR platform with next-generation clinical decision support capabilities that will provide patients and providers with powerful tools to drive better health outcomes at lower costs in a manner aligned with global Value Based Care trends. Given that we are a significant stakeholder in HEALWELL, we are excited about the value creation possibilities that will accrue as a result of HEALWELL and Intrahealth combining and effectively building the ultimate AI co-pilot for physicians.”

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Intrahealth supports approximately 15,000 healthcare professionals across its global network. In 2024, it is expected that Intrahealth will generate more than $12 million in revenues, achieve over 80% gross margins, produce positive EBITDA and increased cashflows. Approximately 70% of Intrahealth’s revenue is generated in Canada and over 80% of its revenue is high margin recurring revenue.

Dorian Prior, President of Intrahealth commented, “Our talented multi-national team at Intrahealth is thrilled to join HEALWELL at such an exciting time in their development as a company; we’re looking forward to integrating Intrahealth’s products with HEALWELL’s cutting-edge AI technologies. The future of healthcare will unquestionably involve AI and we feel fortunate to have an opportunity to be at the forefront of the future of our industry. This comes at a great time where we have never had a better pipeline of growth opportunities.”

Intrahealth is engaged in the business of providing a suite of flexible software solutions to a wide variety of customers including health authorities, hospitals, public health outpatient centres, community health, home care, ambulatory care, and diverse healthcare professionals. Intrahealth provides highly configurable software solutions that also support mobile platforms and seamless access to virtual care/telehealth solutions. Intrahealth’s solutions for hospitals include patient administration systems, bed management, waiting list management, enterprise-wide scheduling, case management, medication management, emergency room operations and ward management, among many other features.

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