07:49 AM EDT, 09/10/2024 (MT Newswires) -- WELL Health Technologies ( WHTCF ) on Tuesday said it completed the acquisition of three primary care clinics in British Columbia and executed definitive agreements to acquire four diagnostic imaging clinics in Alberta over the past 10 days.

The acquisitions represent combined annual revenue of $17.8 million and were all financed from cash on hand.

The company plans to improve operating margins at the acquired clinics by an average of 1000 basis points within the next 1-2 years. It reports that in the fourth quarter of last year, WELL acquired or absorbed 21 clinics, including legacy MCI OneHealth and MB Clinic networks, followed by 10 clinics from Shoppers Drug Mart in June. These clinics were all originally operating with negative adjusted EBITDA margins but are now profitable, with mid-single digit operating margins for the legacy MCI OneHealth and MB Clinic, and slightly lower margins for the newly acquired Shoppers Drug Mart clinics.

WELL's Canadian clinic acquisition and absorption pipeline now stands at five signed LOIs representing $11.8 million in revenue at 5% operating margins and more than 50 clinics in pre-LOI review.

"Our historical ROIC1 in the Canadian clinics Business has been strong at 14% with our primary care network achieving figures of approximately 25%, demonstrating our ability to consistently create value. Looking ahead, we are very excited about the opportunities before us," said CEO Hamed Shahbazi. "With an obtainable market that exceeds ten times the size of our existing business, we see significant room for growth and are finding opportunities to reinvest at rates of return higher than our historical averages."