Transactions Advance Amwell’s Strategy to
Enable Health Systems’ and Health Plans’ Telehealth Programs with
Ongoing Organic and Inorganic Platform Enhancements
Acquisitions Bring Proven Longitudinal Care and
Behavioral Healthcare Capabilities, Expanding Amwell’s Ability to
Improve Patient Care Between Visits Using Interactive
Technologies
Amwell®, (NYSE: AMWL) a national telehealth leader, today
announced that it has signed definitive agreements to acquire
SilverCloud Health, a leading digital mental health platform, and
Conversa Health, a leader in automated virtual healthcare. By
adding the technology of these two companies to its virtual care
platform, Amwell is greatly enhancing the differentiated value it
can bring to current and future clients. Each company brings
unique, proven capabilities that will position Amwell to materially
advance the reach and impact of care teams on patients’ lives
through the use of interactive tools that strengthen the cohesion
between physical and virtual care.
“We believe that future care delivery will inevitably blend
in-person, virtual and digital care experiences; and as such, we
are uniquely building a global platform to support such advanced,
coordinated care,” said Ido Schoenberg, Chairman and Co-CEO,
Amwell. “By integrating SilverCloud Health and Conversa Health into
our platform we are demonstrating Amwell’s fundamental and
repeatable design to continually scale digital healthcare services
across the different sites of care. These acquisitions will amplify
the presence and reach of care teams and reaffirm that as the needs
of the healthcare marketplace evolve, so too will the Amwell
platform.”
Both SilverCloud Health and Conversa Health have shown they can
enable a more efficient blend of in-person, virtual and digital
care, and in turn have helped to lower operational and healthcare
costs, as well as advanced care outcomes. With these acquisitions
and in partnership with those on its platform, Amwell can
accelerate its work to redefine the practice of medicine to include
always-on healthcare companionship that makes the balance and
transition between interactive, digital and in-person care more
fluid.
SilverCloud Health: SilverCloud Health delivers a range
of digital cognitive behavioral health programs that are
evidence-based and clinically validatedi. These programs have shown
results equivalent to face-to-face care for the 1 in 5 people with
a diagnosable mental health condition and have helped over 65
percentii of patient, member, and employee users to experience
significant decreases in depression and anxiety symptoms. Used
globally by more than 300 organizations including
Kaiser-Permanente, Optum, Providence Health and over 80 percent of
the U.K.’s National Health Service mental health services, Amwell
will leverage SilverCloud Health’s award-winning platform and more
than 17 years of clinical research to enrich its own behavioral
health offerings, as well as to develop new digital specialty care
programs.
Conversa Health: Conversa Health helps leading healthcare
organizations including Northwell Health, UCSF Health, UNC Health,
University Hospitals and Prisma Health to remotely manage and
engage patients by delivering configurable, automated text-based
conversations to support a wide range of clinical needs – from
pre-admission patient education and preparedness to post-acute
monitoring, to chronic care management and more. The core
technology of Conversa Health extends health system care teams by
using automated patient interactions to ensure patients stay on
track before and after live or virtual visits. Amwell will leverage
Conversa Health’s proprietary patient profiling and health signals
engine and library of evidence-based digital pathways to advance
initiatives aimed at longitudinal care, clinical quality, and
population health. Using automated patient outreach and engagement
tools alongside care management teams, Amwell clients will benefit
from improved care coordination, cost management, patient
experience and outcomes.
In addition to the above, the Conversa Health and SilverCloud
Health acquisitions will help Amwell realize value in a number of
key ways:
- Advanced Platform Offerings — The combined company will
seek to pioneer new digital care workflows and programs to improve
patient engagement and care team reach, as well as to advance care
delivery outcomes. Initial efforts will focus on virtual care
automation and patient companionship to advance longitudinal care,
behavioral health, and other specialty and chronic care
segments.
- Accelerated Growth Opportunity in New Markets — Amwell
will expand its current client base to include hospital, health
system, health plan and employer clients of Conversa Health and
SilverCloud Health. The geographical footprint of SilverCloud
Health will also help Amwell to accelerate its global growth plans,
specifically within the United Kingdom and Ireland.
“There is a tremendous unmet need for mental health solutions in
today’s world. While SilverCloud Health’s mental health programs
have been used to support over 750,000 people to date, in
partnership with more than 300 organizations globally including The
Irish Health Service Executive and over 80% of the U.K.’s NHS
mental health services, our work has only just begun,” said Ken
Cahill, CEO of SilverCloud Health. “We are delighted that the next
chapter will be from the Amwell platform. The reach of Amwell
provides us with the access and resources to become the true global
leader of digital mental health care delivery. The SilverCloud team
has worked tirelessly for over a decade, and today becoming part of
Amwell enables us to scale against our vision of effective mental
healthcare for all.”
“Conversa Health pioneered automated virtual care to transform
traditional care delivery and dramatically improve patient access,
experience, and outcomes while lowering cost,” said Murray
Brozinsky, CEO of Conversa Health. “We’re thrilled to join forces
with Amwell, the clear telehealth platform leader, and together to
usher in the hybrid care delivery model of the future. Blending
physical, virtual, and automated care is a game changer for
patients and providers alike. This is a big step for Conversa, and
a giant leap for healthcare.”
Aggregate purchase price for SilverCloud and Conversa is
approximately $320 million and Amwell expects to fund the
transactions using a mix of stock and cash. On a standalone basis
and excluding any deferred revenue write downs, aggregated 2021
calendar revenue of Conversa and SilverCloud is expected to be
approximately $15 million with an anticipated revenue growth rate
of approximately 100% in 2022. The parties expect the transactions,
which are subject to customary closing conditions, to close in Q3
2021. Further details regarding the acquisitions will be reported
on a Form 8-K filing that will be filed with the Securities and
Exchange Commission today.
Barclays acted as exclusive financial advisor and Ropes &
Gray LLP acted as legal counsel to Amwell on both Transactions.
Cantor Fitzgerald & Co. Acted as exclusive financial advisor to
Silver Cloud Health.
To learn more please visit: https://business.amwell.com/
About Amwell
Amwell is a leading telehealth platform in the United States and
globally, connecting and enabling providers, insurers, patients,
and innovators to deliver greater access to more affordable, higher
quality care. Amwell believes that digital care delivery will
transform healthcare. The Company offers a single, comprehensive
platform to support all telehealth needs from urgent to acute and
post-acute care, as well as chronic care management and healthy
living. With over a decade of experience, Amwell powers telehealth
solutions for over 2,000 hospitals and 55 health plan partners with
over 36,000 employers, covering over 80 million lives. For more
information, please visit https://business.amwell.com/.
American Well, Amwell, Converge and Carepoint are registered
trademarks or trademarks of American Well Corporation in the United
States and other countries. All other trademarks used herein are
the property of their respective owners.
Forward-Looking Statements
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and our industry that involve substantial risks and uncertainties
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represent our beliefs and assumptions only as of the date of this
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factors and assumptions, include, but are not limited to: weak
growth and increased volatility in the telehealth market; inability
to adapt to rapid technological changes; increased competition from
existing and potential new participants in the healthcare industry;
changes in healthcare laws, regulations or trends and our ability
to operate in the heavily regulated healthcare industry; our
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investor relations section of our website at investors.amwell.com
and on the SEC’s website at www.sec.gov.
i Richards, D., Enrique, A., Eilert, N. et al. A pragmatic
randomized waitlist-controlled effectiveness and cost-effectiveness
trial of digital interventions for depression and anxiety. npj
Digit. Med. 3, 85 (2020). https://doi.org/10.1038/s41746-020-0293-
https://www.nature.com/articles/s41746-020-0293-8 ii Percentage
represents data from Coversa Health’s internal analytics team which
assesses user outcomes based on platform data.
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Holly Spring Holly.spring@amwell.com 781.888.8219
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