Canadian healthcare technology company HEALWELL AI has completed the acquisition of Intrahealth Systems, an advanced software-as-a-service (SaaS) based electronic health records (EHR) management platform.
With its origins in New Zealand and now headquartered in Vancouver, British Columbia, Intrahealth was first acquired by WELL Health Technologies (WELL) in April 2021.
Solutions provided by Intrahealth are integral to hospital operations, encompassing patient administration, bed, case and waiting list, scheduling, and medication management, as well as emergency room and ward operations.
The acquisition, which was previously made public, sees HEALWELL AI taking over 100% of the outstanding shares of Intrahealth from WELL Health Technologies for a total consideration of C$24.2m ($18.1m).
Payment of this transaction value is structured as C$3.6m in cash at closing, C$15m in Class A subordinated voting shares of HEALWELL, equivalent to approximately 21.7 million shares each priced at $0.69, and an additional C$5m to be paid over the next ten months, in cash or shares at WELL’s discretion.
In addition, WELL will pay an earnout of approximately C$0.6m to the previous owners of Intrahealth, which is due in May 2024.
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Under the other terms of the transaction, HEALWELL, WELL, and Intrahealth have also signed a ‘transition services agreement’ to facilitate the smooth transition of services from Intrahealth to HEALWELL.
Following the transaction, WELL has now become a new control person of HEALWELL, holding a significant share percentage of 22.7 million to 32.7 million shares, subject to the final payment method for the post-closing amount of C$5m.
The latest merger of HEALWELL’s AI capabilities and Intrahealth’s EHR platform aims to create an AI-powered EHR platform, enhancing clinical decision support with next-generation capabilities.
HEALWELL CEO Dr Alexander Dobranowski said: “By combining the power of AI with a comprehensive EHR platform, we believe we can unlock enormous potential to enhance patient care and drive better health outcomes, all at lower costs for healthcare systems.”
Intrahealth president Dorian Prior said: “This acquisition represents a significant milestone in Intrahealth’s history, as it marks a pivotal moment in growth trajectory and represents a new chapter in our commitment to advancing healthcare technology.”
In December 2023, HEALWELL AI acquired a majority stake in Canada-based healthcare AI company Pentavere Research Group.