The acquisitions will expand Amwell’s virtual care offerings and client base, with SilverCloud Health bringing digital behavioral health programs to its roster and Conversa Health adding text-based patient communications
Telehealth company Amwell is expanding its reach and service offerings through two acquisitions.
The company is purchasing SilverCloud Health and Conversa Health for approximately $320 million. Amwell expects to fund the transactions using a mix of stock and cash.
The transactions will help Boston-based Amwell diversify its business, according to the news release.
SilverCloud Health, which is also based in Boston, provides an array of digital cognitive behavioral health programs, which can help decrease symptoms of depression and anxiety. Over 300 organizations around the globe use SilverCloud Health’s programs, including Kaiser Permanente and Optum.
Amwell will leverage the company’s platform and clinical research to enhance its own behavioral health offerings and to develop new specialty care programs. In addition, SilverCloud Health’s geographical footprint, which includes the United Kingdom and Ireland, will enable Amwell to advance its global growth plans.
Portland, Oregon-based Conversa Health’s technology enables automated text-based conversations that can help support patients’ clinical needs, from pre-admission patient education to post-acute monitoring and chronic care management. The company has worked with several prominent health systems, including Northwell Health and University Hospitals, to remotely manage and engage patients.
Conversa Health’s proprietary patient profiling and health signals engine as well as its library of digital pathways will enable Amwell to advance its longitudinal care, clinical quality and population health initiatives.
Further, through the acquisitions, Amwell will expand its current customer base to include the provider, payer and employer clients of both Conversa Health and SilverCloud Health.
“We believe that future care delivery will inevitably blend in-person, virtual and digital care experiences; and as such, we are uniquely building a global platform to support such advanced, coordinated care,” said Ido Schoenberg, chairman and co-CEO of Amwell, in a news release. “These acquisitions will amplify the presence and reach of care teams and reaffirm that as the needs of the healthcare marketplace evolve, so too will the Amwell platform.”
The acquisitions, which are subject to customary closing conditions, are expected to be completed in the third quarter of this year.
It is a well-documented fact that the Covid-19 pandemic accelerated telehealth use, boosting it to new heights. Though its use has plateaued since the peak of the public health crisis, it is still 38 times higher than before the pandemic, according to a recent report from McKinsey & Company.
Amwell has benefitted from this significant uptick in virtual visits. Its most recent financial results show that it gained $57.6 million in revenue during the first quarter of 2021. The number of total active providers on its platform grew to 81,000, up 240% compared to the same period last year, and total visits reached 1.6 million, a 120% increase from Q1 2020.
But the company’s net losses also widened, totaling $39.8 million in Q1 2021 versus $25.2 million in the same period the year prior.
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