Well Health Technologies, an operator of virtual care clinics in British Columbia, agreed to acquire a majority stake in telehealth company Circle Medical, for $14 million.
Circle Medical was graduated from the Y-Combinator program in August 2015. The company said it generated your-over-year revenues of $5 million in 2020. Back then, in 2018, it raised $3.5 million in a funding round, which was led by led by A.Capital, with participation from Y Combinator and Collaborative Fund.
Circle Medica operates pop-up clinics at 35 states in the U.S, including the San Francisco Bay area. According to the company, primary healthcare practice is “in-network” with most insurance carriers and runs on its technology platform, which leverages AI to scale a better patient experience, improve health outcomes and maintain a lower operating cost than traditional primary care models. An “in-network” patient can download and use the app anytime for either no cost or a small co-pay. “Out-of-network” patients can also use the app at with a per-use fee. According to the company, its insurer relationships provide care to approximately 200 million Americans.
As part of the transaction, Well Health will obtain exclusive rights to commercialize Circle Medical’s technology in Canada.
Well Health is a Canadian healthcare technology company that operates and owns 20 primary healthcare medical clinics, supplies electronic medical records solutions to over 2,000 medical facilities, and provides telehealth service.
“We are excited at the prospect of partnering with Well to help us rapidly scale our telehealth technology and grow market share in the United States,” said George Favvas, Co-Founder and CEO of Circle Medical.
George Favvas added, “Our patient-centric app has not only delivered great experiences but also improved outcomes. We have a compelling development road map ahead that will continue to empower patients to better health. Given the unprecedented circumstances with the COVID-19 pandemic, we believe now more than ever is the time to innovate and create exceptional healthcare experiences.”
Concurrent with the acquisition, Well Health also announced the non-brokered private placement of 4,821,802 common shares, at a price per share of $4.77, for gross proceeds of $23 million – subscribed by Hong Kong business leader Mr. Li Ka-shing, and a group of investors.
Image credit: Well Health Technologies