What You Should Know:
– Amwell (NYSE: AMWL), a leading global provider of digital care solutions, announced today the sale of its Amwell Psychiatric Care (APC) business to Avel eCare, a prominent provider of clinician-to-clinician telehealth services.
– The strategic divestiture allows Amwell to further sharpen its focus on key growth areas, drive greater efficiencies, and better align with evolving client needs in the digital health market.
Strategic Divestiture and Financial Implications
Amwell acquired APC, a virtual psychiatric care service, in 2019. This divestiture reflects Amwell’s commitment to agility and adapting to market demands, a hallmark of the company’s nearly 20-year history.Avel eCare is acquiring the APC business for approximately $21 million in cash at closing, with an additional earn-out payment. The sale includes APC technology, personnel, and Asana, the psychiatric clinical network affiliated with Amwell.
Continued Commitment to Behavioral Health
While divesting APC, Amwell remains dedicated to providing accessible behavioral health services through its affiliated clinical partner, Amwell Medical Group (AMG). AMG offers a range of services, including AMG Therapy Services and SilverCloud by Amwell digital behavioral health, which will continue to be integrated into Amwell’s suite of digital care solutions.
Focus on Key Growth Areas
By divesting APC, Amwell can further prioritize its key growth areas, including:
- Expanding its core digital care platform: Enhancing its technology and services to meet the evolving needs of healthcare providers and patients.
- Driving operational efficiency: Streamlining operations and optimizing resource allocation to improve profitability.
- Fulfilling clients’ digital care ambitions: Providing innovative solutions that empower healthcare organizations to deliver high-quality virtual care.
2024 Guidance Reaffirmed
Amwell also reaffirmed its financial guidance for 2024, which includes:
- Revenue in the range of $247 million to $252 million
- Adjusted EBITDA in the range of ($137) million to ($142) million
- AMG visits between 1.4 million and 1.5 million
“The divestment of APC will enable us to increase focus on our unified, world class digital care platform. The transaction strengthens our balance sheet while emphasizing our focus on growing accretive software contribution in our product mix,” said Ido Schoenberg, M.D., Amwell chairman and CEO. “We’re confident Avel eCare will be a wonderful home for our APC business and will continue to offer great value to clients. Their expertise in telehealth and shared commitment to innovation make them the ideal organization to carry forward this important work. We look forward to exploring collaborative ways for Amwell and Avel to serve patients and communities together.”
