WELL Health to acquire MyHealth for $206 million

VANCOUVER – WELL Health Technologies Corp., a company focused on consolidating and modernizing clinical and digital assets within the healthcare sector, has announced an agreement to acquire MyHealth Partners Inc. for $206 million, plus a future conditional earn-out of up to $60 million. MyHealth provides primary care, specialty care, telehealth services and accredited diagnostic health services from 48 locations across Ontario.

Hamed Shahbazi (pictured), chairman and CEO of WELL commented, “The planned acquisition of MyHealth cements WELL’s position as a foundational leader in the Canadian healthcare marketplace. Once completed, WELL will be the largest non-governmental owner-operator of outpatient medical clinics in Canada.”

He added, “MyHealth is a tech enabled and forward-thinking network delivering roughly three quarters of its medical consultations via telehealth. To our knowledge, this will position WELL as the leading multi-disciplinary provider of telehealth services in Canada due to the breadth and depth of primary and secondary healthcare service offerings, including a substantial telecardiology and teleradiology program.”

Founded in 2013 and boasting 48 locations across Ontario, MyHealth has over 760 healthcare professionals providing patient services.

For the twelve months ended March 31, 2021, MyHealth recorded over 500,000 patient visits including primary, specialty, telehealth, and diagnostic visits. MyHealth offers medical consultations both in-person and through telehealth, as well as diagnostic services related to cardiology, women’s health, bone/muscle health and cancer diagnostics.

Post-closing, MyHealth will become a WELL subsidiary and business unit and will be operated by its current staff led by Suresh Madan, who currently serves as MyHealth’s CEO. WELL’s proposed acquisition of MyHealth has the following positive elements:

• Extensive Practitioner and Referral Network. MyHealth adds approximately 160 physicians and 600+ other healthcare professionals to WELL’s platform including general practitioners, nurse practitioners, and specialists covering a myriad of specialty areas (e.g. cardiology, rheumatology, vascular surgery, radiology, and echocardiography). Post-closing, WELL is expected to have one of the largest networks of physicians in Canada. MyHealth’s 48 accredited diagnostic facilities provide OHIP-covered speciality services to over 10,000 referring physicians.
• Telehealth-First Approach. Approximately 75% of MyHealth’s medical consultations are currently being completed via telehealth. MyHealth has a well-established “bricks-and-clicks” approach to healthcare delivery. MyHealth’s telehealth service focuses on, telecardiology, teleradiology, and soon diabetes, kidney and pain care, making MyHealth the largest secondary or specialty care telehealth provider in Canada, and WELL the leading multi-disciplinary telehealth service provider in Canada.
• Tech-Enabled Operations. MyHealth embraces digital health tools and technologies, including software, to drive referrals, patient portal access to radiology records, mobile booking app for patients and a proprietary business intelligence system.
• MyHealth’s doctors already use WELL’s OSCAR Pro EMR to support its primary care services and is integrated with Insig Health’s proprietary workflow and patient in-take platform. WELL expects significant digital cross-collaboration opportunities going forward.
• M&A Approach Complements WELL’s Disciplined Capital Allocation Program. MyHealth is Canada’s largest and fastest growing consolidator of specialty medicine and diagnostic centers, successfully completing 25 acquisition transactions of a combined 33 independent clinics over the past eight years. MyHealth is expected to continue to pursue its accretive M&A program after the proposed acquisition by WELL and has an active pipeline including 125 potential targets.

“All of our physicians and medical professionals are excited to join WELL due to the vision and dedication of the WELL team to positively impact health outcomes by leveraging technology. We have already integrated with and are using a number of WELL’s technology solutions and are looking forward to deepening our collaboration,” said Suresh Madan, President and CEO of MyHealth.

“MyHealth has been focused on delivering timely information to our patients and physicians in our healthcare system. This is especially true at a time where physicians using telemedicine rely so heavily on our diagnostic tools and services. We have always been intentional about leveraging technology to drive positive changes to health outcomes. Joining forces with WELL will allow us to further develop and implement technologies to cut wait times and further optimize healthcare experiences for patients.”

The Royal Bank of Canada is acting as lead arranger and bookrunner leading a syndicate of five other banks for the new senior credit facility. The collateral for the debt financing is exclusively leveraging the MyHealth asset itself.

Eight Capital is acting as lead financial advisor to WELL, with Stifel GMP also provided advisory services to WELL on the Transaction. Clark Wilson LLP, Torys LLP and Dentons are acting as legal counsel to WELL on the transaction. Blakes LLP is acting as legal counsel to WELL on the financing. Deloitte Corporate Finance Inc. and Gowling WLG (Canada) are acting as financial and legal advisor counsel to MyHealth Partners Inc. respectively.