Amwell, a telehealth company, announced that it had signed definitive agreements to acquire SilverCloud Health, a digital virtual mental health platform, and Conversa Health, an automated virtual healthcare platform.
The aggregate purchase price for SilverCloud and Conversa is approximately $320 million, and Amwell expects to fund the transactions using a mix of stock and cash. The Aggregated 2021 calendar revenue of Conversa and SilverCloud is expected to be approximately $15 million, with an anticipated revenue growth rate of roughly 100% in 2022.
SilverCloud Health delivers a range of digital cognitive behavioral health programs that are evidence-based and clinically validated. Amwell plans to leverage SilverCloud Health’s platform and clinical research to enrich its behavioral health offerings and develop new digital specialty care programs.
Conversa Health helps healthcare organizations to manage and engage patients by delivering automated text-based conversations to support a wide range of clinical needs – from pre-admission patient education and preparedness to post-acute monitoring to chronic care management and more.
Amwell plans to leverage Conversa Health’s patient profiling and health signals engine and library of evidence-based digital pathways to advance initiatives aimed at longitudinal care, clinical quality, and population health.
“There is a tremendous unmet need for mental health solutions in today’s world. While SilverCloud Health’s mental health programs have been used to support over 750,000 people to date, in partnership with more than 300 organizations globally, including The Irish Health Service Executive and over 80% of the U.K.’s NHS mental health services, our work has only just begun,” said Ken Cahill, CEO of SilverCloud Health.”
“Conversa Health pioneered automated virtual care to transform traditional care delivery and dramatically improve patient access, experience, and outcomes while lowering cost,” said Murray Brozinsky, CEO of Conversa Health. “We’re thrilled to join forces with Amwell, the clear telehealth platform leader, and together to usher in the hybrid care delivery model of the future. Blending physical, virtual, and automated care is a game-changer for patients and providers alike. This is a big step for Conversa and a giant leap for healthcare.”
Barclays acted as an exclusive financial advisor, and Ropes & Gray served as legal counsel to Amwell on both Transactions. Cantor Fitzgerald & Co. Acted as exclusive financial advisor to Silver Cloud Health.
One hundred thirty-six digital health companies were acquired in the first half of 2021 compared to 83 in 1H 2020. Hims & Hers, an online direct-to-consumer telehealth company that uses remote consultation to prescribe cosmetic and sexual health products, recently announced the acquisition of Honest Health, a hair loss virtual clinic for men.