WELL Health Technologies Corp. (WELL) announced it has completed its acquisition of ExecHealth, a primary care and executive health services provider in the Ottawa area. The transaction is valued at C$12.6 million.
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ExecHealth is WELL’s first acquisition of clinical assets in Ontario and is expected to be highly accretive. Indeed, it has organically grown both revenue and EBITDA at growth rates of over 20% over the past three years. ExecHealth represents the continued expansion of the WELL Health Clinic Network into the premium margin corporate and executive health segment. (See WELL Health Technologies stock analysis on TipRanks.)
WELL’s Chief Medical Officer Dr. Michael Frankel said, “We are pleased to welcome the talented ExecHealth team to WELL and expand our network into Ontario. They are an excellent complement to our network given their strong embrace of technology and the fact that they are delivering more than half of their visits via telehealth. ExecHealth has an excellent record in providing outstanding patient care.”
A week ago, Desjardins analyst David Newman reiterated a Buy rating on the stock with a C$10.50 price target (45.8% upside potential). In an update to clients, Newman debunked a short-seller report from Grizzly Research, which claims that WELL has consistently overpaid for its acquisitions, including its just-closed $327.9 million acquisition of gastroenterology and anesthesia company CRH Medical.
Overall, WELL Health stock scores a Strong Buy consensus rating based on 7 Buys. The average analyst price target of C$11.36 implies a 57.8% upside potential to current levels.
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