Google-Backed Amwell to Go Public Thursday
American Well Corp, a telehealth company backed by Google, could raise as much as $560 million when it goes public on Thursday.
American Well, or Amwell, is offering 35 million shares at $14 to $16 each, according to a regulatory filing.
The Boston company provides a digital platform that connects doctors with their patients. Amwell said it has powered more than 5.6 million telehealth visits for its clients since its launch. More than half, or 2.9 million, have occurred in the last six months. It is going public after one of its biggest rivals, Teladoc Healthc (ticker: TDOC), agreed to an $18.5 billion merger with Livongo Health (LVGO) in August.
Roy and Ido Schoenberg, who are brothers, founded Amwell in 2006. The brothers serve as Amwell’s co-CEOs. (Ido is chairman of Amwell, while Roy is president.) They will each have 25.5% of total voting power after the IPO, the regulatory filing said.
Amwell’s customers include 150 health systems like New York-Presbyterian and Northwell Health, 55 health plans such as Anthem (ANTM), and several Blue Cross Blue Shield affiliates. Companies like Oracle (ORCL), Campbell Soup Co (CPB) and Wellpath also use Amwell to provide telehealth services, the company website said.
The Covid-19 pandemic has provided a boost to Amwell, which is seeing an increase in demand for remote access to providers. Amwell visits in April surged to over 40,000 a day, up from 2,900 visits a day for the same period in 2019, the regulatory filing said.
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