Amwell Divests Psychiatric Care Business to Avel eCare for $21M

Amwell, a leading global provider of digital care solutions, has sold its Amwell Psychiatric Care (APC) business to Avel eCare 5, a prominent provider of clinician-to-clinician telehealth services, for approximately $21 million in cash at closing, with an additional earn-out payment. The sale includes APC’s technology, personnel, and the affiliated psychiatric clinical network, Asana. This strategic divestiture, reflecting Amwell’s nearly 20-year commitment to agility and market responsiveness, enables the company to focus on key growth areas, drive operational efficiency, and better align with evolving client needs in the digital health market.

Amwell acquired APC in 2019 as a virtual psychiatric care service, and while divesting this unit, it remains dedicated to behavioral health services through its affiliated clinical partner, Amwell Medical Group (AMG). AMG will continue to deliver digital behavioral health solutions, including AMG Therapy Services and SilverCloud by Amwell, as part of Amwell’s comprehensive digital care offerings.

The divestiture allows Amwell to prioritize expanding its core digital care platform, enhancing technology and services to meet evolving healthcare demands, optimizing operations to improve profitability, and empowering healthcare organizations to achieve high-quality virtual care. Additionally, Amwell reaffirmed its 2024 financial guidance, projecting revenue between $247 million and $252 million, adjusted EBITDA in the range of ($137) million to ($142) million, and AMG visits of 1.4 million to 1.5 million.

Ido Schoenberg, M.D., Amwell chairman and CEO, stated, “The divestment of APC will enable us to increase focus on our unified, world-class digital care platform. The transaction strengthens our balance sheet while emphasizing our focus on growing accretive software contribution in our product mix. We’re confident Avel eCare will be a wonderful home for APC and will continue to offer great value to clients. Their expertise in telehealth and shared commitment to innovation make them the ideal organization to carry forward this important work. We look forward to exploring collaborative ways for Amwell and Avel to serve patients and communities together.”

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