Well Health signs deal to buy MyHealth Partners in deal worth up to $266.3 million

·2 min read

VANCOUVER — Well Health Technologies Corp. said Monday it will be the largest private-sector operator of outpatient medical clinics in Canada, with one of the country's largest networks of physicians, when it closes a deal to buy MyHealth Partners Inc.

Vancouver-based Well Health said it has a signed agreement to buy MyHealth Partners Inc. of Toronto for up to $266.3 million, adding 48 clinics in Ontario to Well's growing portfolio of medical businesses.

Well Health chief executive Hamed Shahbazi said that it's his company's 10th acquisition this year, and the second-largest following its purchase of CRH Medical Corp., a Vancouver-based company that makes medical equipment.

MyHealth, founded in 2013, has 760 health care professionals, including doctors, who provide primary care, specialty care, telehealth services and diagnostic services under Ontario's provincial health insurance program.

About 75 per cent of MyHealth's medical consultations are done through telehealth technology, some of it provided by Well Health's group of companies.

MyHealth chief executive Suresh Madan, who will continue to head the business, said in a joint statement that joining Well will allow to further develop and implement technologies to cut wait times.

Under the deal, which is expected to close in the third quarter, Well will pay $82 million in cash, $94.3 million in shares at a deemed price per share of $9.80 and $30 million in convertible promissory notes.

Well has also agreed to a four-year performance-based earn-out worth up to an additional $60 million in cash, shares or a combination of both at Well's discretion.

Among the conditions of the transaction is approval by Ontario's Ministry of Health.

This report by The Canadian Press was first published June 7, 2021.

Companies in this story: (TSX:WELL)

The Canadian Press