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  5. WELL: Hi 5i, Well has been busy this month with acquisition of CarePlus and strategic alliance with MCI. [WELL Health Technologies Corp.]
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Investment Q&A

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Q: Hi 5i, Well has been busy this month with acquisition of CarePlus and strategic alliance with MCI. With MCI it mentions AI opportunities in health platform.

Please provide your thoughts on these two events.

Thx.
Asked by Christopher on July 21, 2023
5i Research Answer:

The DRDR acquisiton is a nice deal for WELL from a relatively-stress seller. But it is not hugely material, adding $21M in sales to an expected run rate of $738M this year. It adds 11 clinics and 130 doctors, and WELL is also financial supporting DRDR. As is the case these days, the press release also throws in some AI commentary but we would not read too much into that. Careplus is a bigger deal, and the company provides digitization and staffing services across 29 states. However terms were not disclosed, so it is hard to comment. BUT...WELL on the same day as the announcement increased its guidance for the year, so Careplus is more significant, most likely. But it is a fairly typically M&A deal for WELL, and makes sense from a strategic and diversification standpoint.