Telehealth company Amwell is going public with $100 million in backing from Google. The company filed its preliminary prospectus with the Securities and Exchange Commission (SEC). Morgan Stanley, Goldman Sachs and Piper Sandler are acting as lead joint book-running managers for the offering. UBS, Credit Suisse, Cowen, and Berenberg are acting as bookrunners for the initial public offering (IPO).
Google is investing $100 million into the telehealth company as part of a stock purchase agreement, according to the S-1 filing. Amwell will issue $100 million of its Class C common stock, with the price per share to be equal to the purchase price to the public in the IPO. The telehealth company also announced a strategic partnership with Google Cloud. As part of that deal, Amwell selected Google Cloud as its preferred global cloud platform partner, and will migrate its video performance capabilities onto Google’s cloud platform for both new and existing customers.
Amwell estimates that the subscription revenue market opportunity for health plan customers to be $8.7 billion while the market for health system customers could reach $3.7 billion, the company said in its S-1 filing. The company also projects the urgent care and telepsychiatry visit revenue market opportunity to be approximately $18.2 billion and $3.9 billion, respectively.
Amwell is a leading telehealth platform in the United States and globally, connecting and enabling provider organizations, insurers, consumers, 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.
This was reported by Fierce Healthcare on August 24, 2020.
Contact information: Amwell, 75 State Street, 26th Floor, Boston, Massachusetts 02109; 617-204-3500; Website: https://business.amwell.com