Healthcare technology company, HEALWELL has acquired Orion Health, in hopes of providing “new opportunities for global health systems” when it comes to accessing AI technology.
The company noted the acquisition brings “large enterprise customers, recurring revenues, strong operating margins and free cashflow conversion to HEALWELL”, adding that it creates a new channel for the distribution its AI products.
According to Orion Health, they currently have “over 70 public and private sector customers representing 150 million patient lives worldwide.” HEALWELL plans on using this large global reach to implement their AI tools across health and care, which will reportedly “deliver actionable insights and drive better healthcare outcomes” for these organisations.
Orion Health was acquired for NZD$175 million, which was made up of a combination of cash and shares, with an additional “performance based earn-out” of up to NZD$25 million. Upon acquisition, three new directors have been appointed, including Ian Richard McCrae, Tina Raja and Sam Englebardt, bringing the board up to a total of six members.
Speaking on the acquisition, Dr Alexander Dobranowski, CEO of HEALWELL, noted how it “strengthens our position in the public sector, enabling us to deepen our reach with government partners, thanks to Orion Health’s strong, long-standing relationships. With the added synergies from WELL Health, we are poised to transform healthcare through AI and data-driven innovation.”
Brad Porter, CEO of Orion Health, added: “AI-driven insights have the potential to revolutionise how healthcare providers interact with data, leading to improved decision-making, better patient outcomes, and more efficient care delivery. By leveraging HEALWELL’s expertise in AI, and Orion Health’s R&D in New Zealand, we will enhance our Virtuoso and Amadeus platforms, ensuring healthcare organisations worldwide have access to the most advanced tools for care coordination and population health management.”
Acquisitions in healthcare: the wider trend
Sword Health announced the acquisition of UK-based health tech supplier, Surgery Hero.
VitalHub recently acquired Canadian-based health tech provider Strata Health, a company offering solutions relating to patient access and care reporting for a “total up-front consideration of C$32.3 million, plus potential performance-based consideration”.
Last year, patient engagement platform DrDoctor announced the acquisition of Maia from Mindwave Ventures. The personal health record platform allows users to access appointments and triaging as well as documents, care plans, resources, questionnaires and more. The acquisition marked DrDoctor’s first step into the mental health and community support space, with future plans to extend the solution “across the healthcare ecosystem”.
