WELL Health Technologies is rebranding its subsidiary, WELL Provider Solutions Group, with intentions to spin the business into an independent firm.
WELL’s Provider Solutions business is now known as WELLSTAR Technologies, a software-as-a-service healthcare firm.
“A pure-play SaaS and technology leader, or ‘star,’ is born,” stated Hamed Shahbazi, founder and chief executive of WELL.
To support the rebrand and WELLSTAR’s next phase of growth, the company closed a $50 million equity placement supported by Mawer Investment Management, Edgepoint Wealth Management, and PenderFund Capital Management.
The financing powered two early acquisitions for WELLSTAR at a total cost of $22M—one “well-respected regional EMR” and one “healthcare-focused technology services company”—adding more than 80 new members to the team.
“Today’s announcement and the incredible support we have received from some of Canada’s most esteemed technology investors demonstrates what we have been saying for some time now,” Shahbazi said, “which is that WELL’s technology platform is an exciting growth business which is set up to accelerate growth and drive higher margins for WELL on a consolidated basis.”
By separating WELLSTAR from WELL’s clinical operations, investors have the opportunity to directly invest in a high-growth healthcare technology company with a robust margin profile and strong expansion prospects, according to Shahbazi.
“This strategic move reflects WELL’s commitment to unlocking shareholder value by surfacing the significant growth and market potential of its technology segment,” stated the CEO.
WELLSTAR offers a suite of solutions tailored to meet the needs of healthcare providers, including Electronic Medical Records software, Digital Health Apps, and a suite of AI automation solutions.
The company serves 37,000 healthcare providers across Canada, representing one-third of all healthcare providers in the country.
WELLSTAR will be led by Amir Javidan, who previously held executive roles at Avigilon and TIO Networks.
“We are thrilled to embark on this next chapter as a purposeful and disciplined SaaS and services business which enables us to focus more intensely on transforming healthcare through innovative technology,” said CEO Javidan.
“With this transaction, we have a strong balance sheet and direct access to capital markets, enabling us to accelerate our acquisition growth strategy and deliver even greater value to healthcare providers and our shareholders,” he added.
WELL remains the majority and controlling shareholder of WELLSTAR, with Shahbazi serving on the board of directors.
WELL Health recently acquired the Canadian clinical assets of Jack Nathan Medical, positioning the firm to launch a chain of Health Medical Centres through Walmart’s extensive network of stores.
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