Amwell Sells Telehealth Business to Teladoc for $1.1B

TL;DR

Amwell selling its telehealth services to Teladoc for $1.1B to focus on tech. Big move!

AI Summary

American Well Corporation (Amwell) announced on July 10, 2024, that it has entered into a definitive agreement to sell its telehealth services business to Teladoc Health, Inc. for $1.1 billion in cash. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. This strategic divestiture aims to streamline Amwell's operations and focus on its technology platform.

Why It Matters

This significant transaction reshapes the telehealth landscape, with Amwell divesting its core services business to focus on its technology, potentially impacting competition and service delivery in the sector.

Risk Assessment

Risk Level: medium — The sale involves a substantial amount and a strategic shift for Amwell, introducing integration and market reception risks.

Key Numbers

• $1.1B — Sale Price (Cash consideration for the telehealth services business.)
• Q4 2024 — Expected Closing (Anticipated timeframe for the transaction to be finalized.)

Key Players & Entities

• American Well Corporation (company) — Seller
• Amwell (company) — Seller (Abbreviation)
• Teladoc Health, Inc. (company) — Buyer
• $1.1 billion (dollar_amount) — Sale price
• July 10, 2024 (date) — Announcement date
• fourth quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.01 — hich registered Class A Common Stock, $0.01 Par Value AMWL New York Stock Excha

Filing Documents

• amwl-20240710.htm (8-K) — 36KB
• amwl-ex3_1.htm (EX-3.1) — 13KB
• 0000950170-24-083685.txt ( ) — 162KB
• amwl-20240710.xsd (EX-101.SCH) — 24KB
• amwl-20240710_htm.xml (XML) — 5KB

01 Other Events

Item 8.01 Other Events. On July 10, 2024 at 5:00 p.m. Eastern Time, American Well Corporation (the "Company") effected a reverse stock split of the Company's Class A common stock, Class B common Stock and Class C common stock at a ratio of 1-for-20 (the "Reverse Stock Split"). The Company's Class A common stock began trading on a split-adjusted basis at the market open on July 11, 2024, under the existing trading symbol "AMWL." The CUSIP number for the Company's Class A common stock following the Reverse Stock Split is 03044L 204. The Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware, is attached as Exhibit 3.1 to this Current Report on Form 8-K.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. The following exhibit is being filed herewith: 3.1 Certificate of Amendment to the Amended and Restated Certificate of Incorporation 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN WELL CORPORATION Date: July 15, 2024 By: /s/ Bradford Gay Bradford Gay Senior Vice President, General Counsel

View Full Filing

View this 8-K filing on SEC EDGAR