WELL Health Technologies, a leading Canadian digital health company, has announced its plans to acquire clinic assets from MCI Onehealth Technologies. In addition to the acquisition, WELL will also be making an investment in the company to further advance its AI, data science, and rare and complex disease detection platform.
This strategic move will involve the transfer of a significant portion of MCI’s clinical assets to WELL, a move that will bring over 130 physicians under the WELL banner. The clinics, located in southern Ontario, offer a wide range of primary care services including family medicine, women’s health, and various other specialties.
Earlier, MCI had already sold its operations in Alberta to WELL for 2 million Canadian dollars ($1.5 million). However, the cost of the latest acquisition has not been disclosed by either company.
With this acquisition, WELL expects the Ontario clinics to contribute more than C$21 million in annual revenue and support the company’s positive adjusted earnings before interest, taxes, depreciation, and amortization by 2024.
In addition to the acquisition, WELL and MCI are also forming a strategic partnership. To ensure smooth operations during the transition period until the transactions close on or around Oct. 1, WELL will provide a short-term bridge loan to MCI. This loan will help MCI have the necessary resources to continue operating effectively.
The partnership between the two companies will also focus on advancing MCI’s technology-enabled healthcare research offerings. There will be a particular emphasis on leveraging the power of artificial intelligence for healthcare applications.
As part of this collaboration, WELL will join the MCI board of directors and will have the option to acquire up to 30.8 million Class A shares and Class B shares in MCI over time.
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