Amwell Accelerates Integration of SilverCloud Health

Rhea-AI Summary

Amwell (NYSE: AMWL) has announced a deal to shorten the earnout period from its August 2021 acquisition of SilverCloud Health, a digital mental health company. This restructuring leads to the issuance of 4,959,856 shares of Class A common stock to SilverCloud's former stockholders. The move aims to expedite the integration of SilverCloud into Amwell’s platform, which Dr. Ido Schoenberg highlights as pivotal for enhancing cultural and operational efficiency in delivering behavioral health solutions. The partnership expects to address the significant demand in behavioral health care exacerbated by recent global events.

Positive

• Accelerated integration of SilverCloud Health could enhance operational efficiencies.
• Issuing shares to former stockholders indicates confidence in the growth strategy.
• Focus on behavioral health aligns with increasing market demand.

Negative

• None.

BOSTON--(BUSINESS WIRE)-- Amwell® (NYSE: AMWL), a digital care delivery leader, today announced it has reached an agreement to shorten the earnout period associated with its acquisition of SilverCloud Health, the digital mental health company it purchased in August, 2021. As a result of this renegotiation, Amwell issued an aggregate of 4,959,856 shares of the Company’s Class A common stock to the former stockholders of SilverCloud Health. The news comes on the heels of Amwell announcing the early termination of the earnout associated with its acquisition of Conversa Health.

“SilverCloud digital cognitive behavioral health programs are a crucial aspect of our strategy to empower leading healthcare organizations, with our enterprise software infrastructure. While we were planning to measure the earnout at the end of 2022, accelerating SilverCloud integration now allows us to achieve important cultural, go-to-market, and operational efficiencies that position us to deliver our scalable, comprehensive behavioral health solution to the market more quickly enabling our payer and provider customers to reach more of their members and patients with best-in-class care, driving substantial cost savings and patient experience benefits during this time of need,” said Dr. Ido Schoenberg, Chairman and CEO, Amwell.

“Behavioral and mental health care is one of the most capacity-strained areas of healthcare, and recent global events as well as the pandemic have only exacerbated the crisis further,” said Ken Cahill, General Manager of SilverCloud Health. “Together with Amwell, we expect to quickly, effectively, and efficiently scale our digital therapy content, programs and support, which have shown clinical results equivalent to face-to-face care with lower cost and broader reach.”

About Amwell

Amwell is a leading digital care delivery platform in the United States and globally, connecting and enabling providers, insurers, patients, and innovators to deliver greater access to more affordable, higher quality care. Amwell believes that digital care delivery will transform healthcare. The Company offers a single, comprehensive platform to support all telehealth needs from urgent to acute and post-acute care, as well as chronic care management and healthy living. With over a decade of experience, Amwell powers telehealth solutions for over 2,000 hospitals and 55 health plan partners with over 36,000 employers, covering over 80 million lives. For more information, please visit https://business.amwell.com/.

American Well, Amwell, SilverCloud, Conversa, Converge and Carepoint are registered trademarks or trademarks of American Well Corporation in the United States and other countries. All other trademarks used herein are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements about us and our industry that involve substantial risks and uncertainties and are based on our beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations, financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” or “would,” or the negative of these words or other similar terms or expressions.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our beliefs and assumptions only as of the date of this release. These statements, and related risks, uncertainties, factors and assumptions, include, but are not limited to: weak growth and increased volatility in the telehealth market; inability to adapt to rapid technological changes; increased competition from existing and potential new participants in the healthcare industry; changes in healthcare laws, regulations or trends and our ability to operate in the heavily regulated healthcare industry; our ability to comply with federal and state privacy regulations; the significant liability that could result from a cybersecurity breach; and other factors described under ‘Risk Factors’ in our most recent form 10-K filed with the SEC. These risks are not exhaustive. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Further information on factors that could cause actual results to differ materially from the results anticipated by our forward-looking statements is included in the reports we have filed or will file with the Securities and Exchange Commission. These filings, when available, are available on the investor relations section of our website at investors.amwell.com and on the SEC’s website at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005699/en/

Media:

Lindsay Sharifipour

Press@amwell.com

Investors:

Sue Dooley

sue.dooley@amwell.com

Source: Amwell

FAQ

What is the recent announcement from Amwell (AMWL) regarding SilverCloud Health?

Amwell announced it will shorten the earnout period for its acquisition of SilverCloud Health, issuing nearly 5 million shares to SilverCloud's former shareholders.

How many shares did Amwell issue to SilverCloud's stockholders?

Amwell issued 4,959,856 shares of Class A common stock to the former stockholders of SilverCloud Health.

Why did Amwell decide to accelerate the integration of SilverCloud Health?

The acceleration aims to achieve operational efficiencies and deliver behavioral health solutions more quickly to address heightened demand.

What impact does Amwell’s acquisition strategy have on behavioral health?

Amwell’s acquisition strategy targets the rapidly growing behavioral health sector, which is currently facing significant capacity challenges.

When was SilverCloud Health acquired by Amwell?

SilverCloud Health was acquired by Amwell in August 2021.