HEALWELL AI to Acquire VeroSource Solutions and its Cloud-based Health Data Interoperability Platform to Help Large Enterprises Adopt AI-Powered Population Health Capabilities

  • HEALWELL enters into an agreement to acquire VeroSource Solutions Inc. and its end-to-end, customizable, cloud-based platform that enables patients, care providers and administrators to seamlessly access and interact with healthcare data.
  • VeroSource currently serves five provincial health clients and is expected to generate over $8 million in revenues in 2024 with an expected EBITDA1 margin of over 10%. Historically, VeroSource has achieved a 3-year revenue CAGR2 of 30% and higher than 80% gross margins and has consistently produced positive EBITDA1 and cashflows. Over 70% of its sales are recurring revenue.
  • The transaction is expected to be financially and strategically accretive as VeroSource provides data products, insights and services to large enterprises such as Canadian provincial healthcare systems. VeroSource’s products are expected to significantly benefit from HEALWELL’s powerful AI-powered disease detection and patient identification capabilities.
  • The VeroSource Platform has had well over one million users since inception, which includes both patients and providers.

TORONTO, June 11, 2024 (GLOBE NEWSWIRE) -- HEALWELL AI Inc. (“HEALWELL” or the “Company”) (TSX: AIDX, OTCQX: HWAIF), a healthcare technology company focused on AI and data science for preventative care, is pleased to announce that it has entered into an agreement to acquire VeroSource Solutions Inc. (“VeroSource”), a multi-service technology enterprise focused mainly on providing both products and consulting services for total consideration of approximately $24.5 million (the “Transaction”), a significant portion of which is expected to be paid in HEALWELL Class A subordinate voting shares. VeroSource is a Canadian based, multi-service software and services technology company focused on providing healthcare solutions, including a “Digital Front Door” to provincial healthcare systems, including the Province of New Brunswick and several others. 

VeroSource securely integrates health data from sources such as EMRs, pharmacies and hospital information systems into a single platform which is used for analysis across a variety of applications. The company has developed and validated best-in-class capabilities in data management, interoperability and rendering which are key capabilities when unlocking clinical value and addressing unmet needs for patients and providers. VeroSource harnesses AI technology via its VS Data-as-a-Service (“VS DaaS”) product, enabling powerful data visualization and unlocking value through actionable insights. The VeroSource infrastructure and suite of digital health solutions is fully compatible with HEALWELL’s AI capabilities, enabling the expansion of HEALWELL’s digital co-pilot tools into the VeroSource footprint as well as VeroSource’s data interoperability and visualization tools to be used across HEALWELL’s footprint. Combined with HEALWELL’s data structuring and abstraction technology, VeroSource provides additional expertise for HEALWELL to further accelerate its mission of early disease detection.

Dr. Alexander Dobranowski, CEO of HEALLWELL, stated, “We are excited to announce the proposed acquisition of VeroSource who has created a compelling data interoperability platform that powers large enterprises such as provincial health systems. Once integrated with our best-in-class AI-powered disease detection and patient identification capabilities, VeroSource has the potential to roll out very significant population health features that are very much at the core of value-based healthcare trends. VeroSource has demonstrated impressive historical revenue growth rates of 30% CAGR, with a strong pipeline of long-term contracts producing a mix of one-time and recurring SaaS revenue. We look forward to building on their exceptional track record by leveraging our deep connectivity to the Canadian outpatient landscape through our partnership with WELL Health and their successful public sector sales program. We are excited about the growth synergies and the potential to expand our footprint rapidly into new provinces.”

Mark McAllister, CEO of VeroSource, commented, “We are thrilled to join forces with HEALWELL. Our combined expertise will accelerate our mission of empowering people and unlocking the value of healthcare data. With HEALWELL's support, we can expand our innovative digital health solutions more rapidly and effectively across Canada. We believe that we can help accelerate HEALWELL’s mission of early disease detection and providing more comprehensive, AI-driven healthcare solutions.”

VeroSource has had well over one million users since inception, which includes both patients and providers, and is expected to generate over $8 million in revenues in 2024 with expected EBITDA1 margins over 10%. Historically, VeroSource has achieved over 80% gross margins, and consistently produced positive EBITDA1, and positive cashflows. Over 70% of its sales are high margin recurring revenue. The proposed acquisition will add significant revenue, a robust pipeline of long-term enterprise grade contracts, and an innovative digital health platform to HEALWELL. The proposed acquisition is highly accretive, cash conservative, and is expected to deliver significant value. HEALWELL is expected to benefit from VeroSource’s recurring high-margin software and services revenue, strong relationships with private and public sector stakeholders, and a talented team of healthcare technology entrepreneurs, engineers, and data scientists. On closing, this acquisition will mark a significant milestone in the ongoing effort to enhance healthcare delivery and improve patient outcomes through cutting-edge technology.

The proposed acquisition of VeroSource will result in HEALWELL acquiring a number of broad and unique capabilities for the public sector that includes digital front door and patient access solutions, International Patient Summary (IPS) solutions, FHIR interoperability and data solutions, and digital identity solutions. It also adds VeroSource’s provincial public sector customer base to HEALWELL’s existing network of pharmaceutical customers, boosting the Company’s position as a leader in the healthcare technology landscape. VeroSource’s platform exemplifies the practical use of data engineering and machine learning as it utilizes AI tools to help clients predict emergency room wait times with real-time HL7 data feeds, improve hiring processes for HR departments, and explore the use of Large Language Models for better client navigation to essential services. VeroSource’s suite of solutions is designed to drive down healthcare costs and improve patient outcomes by providing health system leaders with actionable insights derived from advanced data visualization.

To read the full press release, visit: Link.

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