CIBC Note Research Highlight: WELL Health - Announces CarePlus Acquisition & Increases 2023
Revenue Guidance: WELL Health announced the acquisition of CarePlus Management, a
provider of recruiting, services, and revenue cycle management for the anesthesia market.
CarePlus was acquired through WELL’s CRH Medical subsidiary with cash on hand, and
further terms of the acquisition were not provided. However, in connection with the deal
WELL increased 2023 annual revenue guidance, with revenue now expected to be $740MM- $760MM, 7% above the midpoint of the previous guide of $690MM-$710MM. We expect that revenue from CarePlus is the primary source of the increased guidance, implying that CarePlus will contribute ~$100MM in annual revenue. Adjusted EBITDA guidance of 10%+ growth is unchanged, further implying CarePlus will contribute minimal EBITDA and that the deal will be margin dilutive to CRH and to WELL’s consolidated business. We expect further details on potential synergies between CarePlus and CRH, future margin potential across CarePlus, and consideration paid during WELL’s Q2 earnings call.