IPO to come as pandemic accelerates use of remote home services
American Well Corp., a Boston telehealth company known as Amwell, said it plans to sell shares to the public and Google, amid a surge in demand for remote health services.
The company, founded by brothers Ido and Roy Schoenberg in 2006, didn’t disclose the number of shares or target price for its initial public offering. In a registration statement filed Monday with securities regulators, it listed a placeholder value of $100 million.
Amwell said Google, the Internet search unit of Alphabet Inc., has agreed to purchase $100 million of class C shares in a private placement at the same time as the IPO. The company will offer class A shares to the public, while the Schoenbergs will hold class B shares that will give them 51 percent voting power.
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Former Massachusetts governor Deval Patrick and Dr. Peter Slavin, president of Massachusetts General Hospital, sit on Amwell’s board of directors. Patrick held options on 13,501 class A shares that can be exercised within 60 days of June 30, according to the filing. Slavin held options on 35,833 class A shares.
The coronavirus pandemic has driven a dramatic increase in the use of telehealth by doctors, mental health professionals, and other caregivers. Amwell said visits nearly tripled to 2.2 million in the second quarter from the previous three months as restrictions on remote care were eased, but also said “it is uncertain how long the relaxed policies will remain in effect, and there can be no guarantee that once the COVID-19 pandemic is over that such restrictions will not be reinstated or changed in a way that adversely affects our business.”
Earlier this month Teladoc Health agreed to buy Livongo Health in a deal valued at $18.5 billion that will create a telemedicine company with $1.3 billion in expected revenue for 2020.
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Amwell’s customers include hospital systems, health insurance plans, and state and federal government agencies. Its revenue was $122.3 million for the six months ended June 30, an increase of 77 percent over the same period a year earlier. Amwell’s net loss widened to $113.4 million from $41.6 million.
The company plans to list its class A stock on the New York Stock Exchange under the symbol AMWL. Underwriters include Morgan Stanley, Goldman Sachs, and Piper Sandler.
Larry Edelman can be reached at larry.edelman@globe.com. Follow him on Twitter @GlobeNewsEd.
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Boston telehealth company Amwell files to sell shares to public, Google - BetaBoston
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