RE:Spinout article WELL Q2 EARNING CALL Q & A Highlights
Q: Can you talk about the ramp-up in growth for Circle Medical, especially given the 65% year-over-year growth in July?
A: Hamed Shahbazi, CEO: Last year, we made significant investments in technology and our clinical network, which were costly and time-consuming but are now paying off. Circle Medical has seen a surge in profitability and margin expansion. We are optimistic about the future, especially as we consider strategic alternatives for Circle Medical.
Q: Regarding the SaaS and service provider solutions spinout, can you update us on potential timelines and progress?
A: Hamed Shahbazi, CEO: We are targeting H1 2025 for the spinout. We believe the provider solutions group will be a $50+ million revenue business by 2025. Operationally, nothing will change as we will maintain strong control and intercompany agreements.
Q: Can you provide details on the legal matter regarding Wisp and its impact on the strategic process?
A: Hamed Shahbazi, CEO: We have settled the Pixel matter, and most of the settlement will be covered by insurance. This legal matter did not factor into our strategic alternatives for Wisp, which remains a strong, growing, and profitable business.
Q: What will be the key use of proceeds from potential divestments or spinouts?
A: Hamed Shahbazi, CEO: Beyond debt repayment and potential special buybacks, we have a pipeline of acquisitions, particularly in the Canadian healthcare landscape. We aim to reallocate proceeds in an accretive manner, focusing on diagnostics and other high-value opportunities.
Q: What are your M&A priorities in the near term?
A: Hamed Shahbazi, CEO: Our focus is on the Canadian clinic program due to our confidence in clinic transformation. We are also looking at well-run businesses in the specialist and diagnostics center side. Additionally, we are ramping up our digital acquisitions pipeline.