08:32 AM EST, 12/16/2024 (MT Newswires) -- Healwell AI (AIDX.TO) on Monday said it will acquire New Zealand-based Orion Health Holdings for $165 million, with a minimum $86 million in cash and the remainder in stock.

The cash portion of the acquisition price will be partially funded by a bought deal private placement of 31,250 convertible debentures at $960 each and 10 million subscription receipts at $2 each for $50 million. The balance is expected to be funded with debt provided by a Schedule 1 bank.

Orion Health is a subscription license and services revenue business serving public sector clients globally with data interoperability and healthcare navigation products and services. It has 400 employees with offices in 11 countries. Orion Health is expected to generate over $100 million in revenue mostly from subscription license and services in calendar 2025.

Orion already has a presence in Canada -- its 20+ year partnership with Alberta Netcare involved integrating data from over 120 clinical sources to create unified patient records. In Ontario, the Virtuoso platform supports Ontario Health 811, a portal that provides 24/7 health advice to 15 million users, reducing emergency care pressures while connecting patients to digital care.

According to a statement, the Orion Health acquisition will enable global health systems to access Healwell's AI technology. It also significantly scales Healwell's platform by deepening its penetration into the public sector, supported by Orion's long-standing government relationships and broader customer base.