US-based telehealth technology producer Amwell has filed for a $100m initial public offering set to take place alongside a $100m private placement by internet technology provider Google.
Amwell has built a telehealth software platform that enables patients to access virtual care and interact with healthcare providers and health insurers. It covers acute and post-acute care as well as chronic disease management and works with hospitals and employers.
The company increased revenue 77% year on year to more than $122m in the first six months of 2020 as the Covid-19 pandemic took more and more forms of care virtual, though its net loss expanded significantly from $41.6m to $113m over the same period.
The IPO proceeds will go to further development of Amwell’s core platform in addition to investment in artificial intelligence and self-help technology in a bid to cut costs.
Amwell also plans to hire more sales and account management staff and will consider strategic acquisitions as it prepares to move into new commercial areas.
The offering comes after about $690m in funding raised by Amwell since it was founded in 2006, including an $81.2m series C round in 2014 featuring pharmaceutical firm Teva.
Insurance group Allianz invested $59.2m in the company in January 2018 through its digital investment arm, Allianz X, and business-to-business-to-consumer subsidiary Allianz Partners’ Health Innovation Center.
Electronics and healthcare equipment manufacturer Philips contributed to a $291m round for the company six months later. It closed a $194m round in May this year that included Allianz X and pharmaceutical group Takeda.
Amwell intends to issue class A shares in the offering. Its shareholders currently hold 17.3 million class shares, 7.4% of which are owned by Allianz X and 7% by Teva.
The company’s co-CEOs Ido and Roy Schoenberg each own 50% of nearly 3.1 million class B shares while Google will acquire class C shares through the private placement.
Morgan Stanley, Goldman Sachs and Piper Sandler are lead joint book-running managers for the offering, which is set to take place on the New York Stock Exchange. UBS, Credit Suisse, Cowen and Berenberg are bookrunners for the IPO.
