WELL Health Plans to Spin Out and Publicly List WELL Provider Solutions

WELL Health (WELL) has announced its plans to spin out and publicly list WELL Provider Solutions (WPS), the company’s Software-as-a-Service (SaaS) business unit.

WELL, founded in 2012 and listed on the Toronto Stock Exchange (WELL.TO), aims to leverage technology to support healthcare providers and their patients. It serves as an end-to-end platform for healthcare providers through its clinics and variety of virtual services. WELL’s WPS business unit offers services related to electronic medical records, billing and revenue cycle management, digital patient management, telehealth, and medical apps, among others.

During the Q2-2024 earnings call, founder and CEO Hamed Shahbazi commented on WELL’s current valuation, stating that it is at a steep discount compared to the sum of its parts and that significant shareholder value could be unlocked by making WPS a standalone public company in the first half of 2025. Shahbazi also believes that the spin out could accelerate the growth of WPS, allowing the business to “ramp up its own capital allocation program to ensure it is growing methodologically, both organically and inorganically.” Shahbazi made clear WELL’s intentions to maintain a voting majority and added that there would be “no real changes” to WPS’s operations and its role within WELL.

The plan to spin out WPS comes during a period of sustained momentum for WELL. In its Q2-2024 earnings, WELL reported quarterly revenues of $243.1 million, a 42% increase from Q2-2023 and one that marks the company’s 22nd consecutive record-breaking revenue quarter. WELL will continue to provide further updates on the WPS spin out in the future.