08:35 AM EST, 12/12/2024 (MT Newswires) -- WELL Health Technologies ( WHTCF ) , a digital healthcare company, on Thursday said it rebranded its subsidiary WELL Provider Solutions Group as Wellstar Technologies, ahead of a planned spinout before the end of next year.

The subsidiary, a software-as-a-service healthcare technology company, provides over 37,000 healthcare providers across Canada with technology and services.

Wellstar, which closed on a $50.4 million equity placement with private investors to fund its pre-spinout growth objective, has also acquired two healthcare technology companies for $17.9 million in cash and $3.9 million in Wellstar subordinate voting shares. Wellstar's proforma revenue, including these two acquisitions, is expected to be over $70 million in 2025 with ebitda margins of approximately 20%.

Wellstar is valued at a pre-financing enterprise value of $285 million, a statement noted.

"Today's announcement...demonstrates what we have been saying for some time now, which is that WELL's technology platform is an exciting growth business which is set up to accelerate growth and drive higher margins for WELL on a consolidated basis," said Hamed Shahbazi, CEO of WELL.