Well Health unit closes acquisitions in Ontario, Quebec

Executive Summary

• Well Health Technologies Corp.'s subsidiary, Wellstar Technologies Corp., completed two strategic acquisitions: PatientServ Corp. in Ontario and Lambert Medico Factures Inc. in Quebec, expanding its national billing platform to six provinces.
• The total consideration for the transactions is approximately $4.8 million upfront, plus up to $6.3 million in future milestone or performance-based payouts.
• The acquisitions are expected to generate approximately $5 million in annual revenue with EBITDA margins approaching 20%, bringing Wellstar’s total annualized revenue run rate to approximately $84 million.

Key Details

• Transaction Structure & Consideration:
  • Total upfront consideration: ~$4.8 million.
  • Future potential payouts: Up to $6.3 million (milestone/performance-based).
  • Terms include assumption of certain indebtedness, customary holdbacks, and working capital adjustments.
• Acquisition Targets:
  • PatientServ Corp.: Acquired Dec. 1, 2025. Ontario-based platform and Ontario Medical Association (OMA) partner specializing in uninsured and third-party medical billing.
  • Lambert Medico Factures Inc.: Acquired Feb. 1, 2026. Quebec-based provider, marking Wellstar's entry into Canada's second-largest provincial physician market.
• Financial Impact & Metrics:
  • Combined annual revenue from PatientServ and Lambert: ~$5 million.
  • EBITDA margins for the acquired assets: Approaching 20%.
  • Wellstar’s new total annualized revenue run rate: ~$84 million.
  • Strategic goal: Target a $100 million revenue run rate by the end of the year.
• Strategic Context:
  • Wellstar now serves six Canadian provinces.
  • Well Health has previously announced a $62 million equity financing to support capital allocation and execution.
  • Focus on digitizing physician billing through automation, advanced analytics, and AI to reduce administrative burden.

Notable Quotes

• Amir Javidan, CEO of Wellstar: "Taken together, these transactions represent a major step forward in our mission to build Canada's most complete and physician-centred clinical operations platform... With the previously announced $62-million equity financing, Wellstar is well-funded to continue to execute on its capital allocation strategy as we continue to target a $100-million-revenue-run-rate goal by the end of this year."
• Hamed Shahbazi, CEO and Chairman of Well Health: "Well remains fully committed to the planned spinout of Wellstar and to unlocking the significant value embedded in this technology asset... That differentiation comes down to four powerful competitive moats: first, its rapid evolution from system of record to system of action... second, its data and context intelligence... third, its brand and trust... and fourth, network effects..."