Scotia's Take on INLIV Acquistion | Scotiabank's Take on Well Health's INLIV Acquisition |
| 2022-06-21 03:17:14 PM ET (MT Newswires) |
03:17 PM EDT, 06/21/2022 (MT Newswires) -- Tuesday morning, Well Health Technologies said it has entered into an asset purchase agreement to acquire INLIV inc. for an all-in purchase price ~$1.8 million (incl. ~$0.2 million holdback). Although the addition is small in comparison to WELL's overall top-line, the transaction looks solid from Scotiabank's perspective, and adds a third city to WELL's executive health brand.
Based in Calgary, INLIV is a specialized care provider with a focus on corporate and executive health. The company has over 1,000 patients, of which a significant portion are considered recurring, with 85%+ of revenues attributable to membership fees.
The addition is WELL's first asset in Alberta and expands its executive care franchise. WELL's other investments in this niche include Ottawa based ExecHealth, and Montreal based ExcelleMD. Combined, WELL noted that these businesses are nearing ~$20 million per year in revenue, and Scotia estimates >$4 million in adj. EBITDA. "With multiples having clearly depressed over recent months, we would not be surprised if the WELL team were to execute on further expansion into Vancouver and Toronto over the coming year," analyst Adam Buckman writes.
Buckman has a positive take on the acquisition, describing it as a "smart tuck-in [which] adds to WELL's growing Canadian executive health franchise."
The transaction is expected to close in Q3/22.
Scotiabank has a Sector Outperform, $7.50 TP on Well Health.