UpHealth Announces Strategic Sale of Innovations Group Incorporated to Belmar Pharma Solutions for Approximately $56 Million in Gross Proceeds

~ Represents a Substantial Milestone in UpHealth’s Focus on Further Integration of its Telehealth, Integrated Care and Behavioral Health Businesses ~

~ Reflects Execution of UpHealth’s New Strategic Vision of Large Data Driven Digitally Integrated Healthcare Services ~  

~ Delivers Significant Liquidity to UpHealth’s Balance Sheet ~

UpHealth, a global digital health company delivering technology platforms, infrastructure, and services to modernize care delivery and health management, announced that it has reached a definitive agreement to divest Innovations Group Inc., (“IGI”), including its compounding pharmacy subsidiary, MedQuest Pharmacy, Inc., to Belmar Pharma Solutions for approximately $56 million in gross proceeds.

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Chief Executive Officer Sam Meckey commented, “Today’s announcement is the result of a commitment to our focus on building a modern integrated platform based on our Telehealth, Integrated Care, and Behavioral Health businesses. This comes on the heels of a complete rationalization and transformation of our business. Our goal is to establish a solid foundation as a technology and technology-enabled services business that can sustainably scale. The divestiture of the well-performing IGI represents a major step forward in sharpening our focus, and a significant milestone as we concentrate on the segments with the greatest opportunity for growth.”

Meckey concluded, “We will use a substantial portion of the proceeds from this sale to invest in our core offerings to drive growth, but will also offer, in accordance with our indenture, to use a portion of the proceeds to pay down some portion of our secured debt. 2023 is a recalibration year for UpHealth and execution of our strategic vision is our top priority. This will allow us to focus on building a fully integrated platform to drive growth. The divestiture to Belmar enables IGI to pursue its respective growth strategies, unlocking the true value of the asset while reinforcing disciplined capital allocation in support of UpHealth’s strategic growth objectives, providing liquidity at a pivotal moment in our company’s evolution.”

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The transaction is expected to close in May and is subject to customary closing conditions. Bourne Partners acted as exclusive financial advisor to UpHealth on the transaction.

UpHealth is a global digital health company that delivers digital-first technology, infrastructure, and services to dramatically improve how healthcare is delivered and managed. The UpHealth platform creates digitally enabled “care communities” that improve access and achieve better patient outcomes at lower cost, through digital health solutions and interoperability tools that serve patients wherever they are, in their native language. UpHealth’s clients include global governments, health plans, healthcare providers and community-based organizations.

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