Telehealth Provider Amwell Raises $742 Million in Upsized IPO

Amwell, a telehealth provider, announced the pricing of its upsized initial public offering of 41.2 million shares of its Class A common stock at an initial public offering price of $18 per share resulted in total gross proceeds of approximately $742 million. This is up from the 35 million shares at $14 to $16 each that Amwell was expected to offer.

Morgan Stanley, Goldman Sachs, and Piper Sandler are acting as lead joint book-running managers for the offering. UBS Investment Bank, Credit Suisse, Cowen, and Berenberg are acting as bookrunners for the offering.

Recently, Google agreed to invest $100 million in Amwell via a private placement. As part of the investment, Amwell is expected to move part of its video capabilities to the Google Cloud Platform, and Google will own 3.03% of Amwell common stock after the IPO. According to Mercom data, Google’s parent company, Alphabet, through its venture capital investment arm of GV (formerly Google Ventures), has invested almost $2 billion in digital health companies since 2010.

Amwell reported revenue of $148.9 million in 2019 compared to $114 million in 2018, a 30.6% increase year-over-year. The company incurred net losses of $52.3 million in 2018 and $88.4 million in 2019.

Founded in 2006, Amwell raised over $800 million in venture capital. The company employs more than 500 people with offices in Boston (HQ), Reston, Seattle, and Ramat Gan, Israel.

Recent IPO Activity

Amwell is one of several digital health companies currently looking to go public. Recently, GoodRx, a digital pharmacy platform that helps consumers compare medication prices and discounts, filed with the SEC for its IPO.

Telemedicine technology provider Specialists On Call (dba SOC Telemed) agreed to be acquired for $720 million and taken public by Healthcare Merger Corporation, a special purpose acquisition company. Accolade, a health benefits navigation platform, has hired banks including Goldman Sachs and Morgan Stanley to advise ahead of a possible IPO. MDLive is also preparing to go public next year, the company’s chief executive officer told STAT News.

Of the 29 digital health public companies Mercom tracks, 13 companies outperformed the S&P 500 Index in 2020 (YTD).

Image Credit: Amwell