Q: Good Morning
Your thoughts on WELL’s transaction with Healwell please.
Thank you
Your thoughts on WELL’s transaction with Healwell please.
Thank you
5i Research Answer:
Healwell is buying Intrahealth Systems from WELL for $24M, with the compensation paid mostly in AIDX shares. It is essentially a 'swap' of a business and WELL already owns shares of AIDX. Not much changes, really, though it puts AIDX in a better position to grow, with more revenue/cash flow, and WELL can benefit from its equity interest. It wil now own between 20% and 27% of the company (depending on earn outs) and AIDX will have about $12M in revenue. It is a bit of a paper shuffle, really, and we would not consider it overly significant. WELL's interest in the company will only be worth about $15M, vs its current market value of ~$1 billion.