UpHealth Announces Strategic Sale of Innovations Group Incorporated to Belmar Pharma Solutions for Approximately $56 Million in Gross Proceeds
February 27 2023 - 8:00AM
UpHealth, Inc. (“UpHealth” or the “company”) (NYSE: UPH), a global
digital health company delivering technology platforms,
infrastructure, and services to modernize care delivery and health
management, today 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.
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.”
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.
About UpHealth
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. For more
information, please visit https://uphealthinc.com and follow us at
UpHealth Inc on LinkedIn.
About Belmar
Belmar began as a local compounding pharmacy in
Denver, Colorado in 1985, and has since grown into a single source
solution for prescribers, patients, and healthcare facilities all
over the country. Belmar offers compounded medication, education,
and consultation for hormonal, anti-aging, and integrative
therapies.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of U.S. federal securities laws. Such
forward-looking statements include, but are not limited to,
statements regarding the closing, including its timing, of the
transaction, the use of proceeds of the transaction, and UpHealth’s
expectations, hopes, beliefs, intentions, plans, prospects, or
strategies regarding its future business plans. Any statements
contained herein that are not statements of historical fact may be
deemed to be forward‑looking statements. In addition, any
statements that refer to projections, forecasts, or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward‑looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. The
forward-looking statements contained in this press release are
based on certain assumptions and analyses made by the management of
UpHealth in light of their respective experience and perception of
historical trends, current conditions, and expected future
developments and their potential effects on UpHealth as well as
other factors they believe are appropriate in the circumstances.
There can be no assurance that future developments affecting
UpHealth will be those anticipated. These forward-looking
statements involve a number of risks, uncertainties (some of which
are beyond the control of the parties), or other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements, including the closing conditions for the transaction
not being satisfied, the ability of the parties to close the
transaction on the expected closing date or at all, the ability of
UpHealth to service or otherwise pay its debt obligations, the mix
of services utilized by UpHealth’s customers and such customers’
needs for these services, market acceptance of new service
offerings, the ability of UpHealth to expand what it does for
existing customers as well as to add new customers, that UpHealth
will have sufficient capital to operate as anticipated and the
impact that the novel coronavirus and the illness, COVID-19, that
it causes, as well as government responses to deal with the spread
of this illness and the reopening of economies that have been
closed as part of these responses, may have on UpHealth’s
operations, the demand for UpHealth’s products, global supply
chains and economic activity in general. Should one or more of
these risks or uncertainties materialize or should any of the
assumptions being made prove incorrect, actual results may vary in
material respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as may be required under
applicable securities laws.
UpHealth Investor Relations
Contact Shannon Devine (MZ North America) Managing
Director 203-741-8811UPH@mzgroup.us
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