• Google is investing $ 100 million in Amwell, one of the largest telemedicine companies in the country, in a private placement to coincide with Amwell’s IPO, the two companies said Monday.
• As part of this multi-year partnership, Amwell will become Google Cloud’s preferred telemedicine platform and Amwell will migrate its video capabilities to Google Cloud.
• The deal comes just weeks after virtual health care giant Teladoc announced it would buy Chronic Illness Manager Livongo for $ 18.5 billion as part of the largest digital health deal to date.
The pandemic has accelerated the adoption of telemedicine in the United States exponentially, and many digital healthcare companies are looking for big deals, encouraged by growing demand and investor interest. Teladoc’s massive acquisition of Livongo is a notable example. Although some analysts and shareholders are unsure of COVID-19’s high price and uncertainty, its size indicates the potential of the growing market for virtual assistance.
Amwell is doing more now. Google’s $ 100 million investment will help the 14-year-old grow his virtual assistance presence, delve into existing markets and explore new opportunities. Amwell already has approximately 2,000 hospitals and 55 health insurers as customers, with over 36,000 employers giving it access to approximately 80 million insured lives.
Google seems like a suitable partner for Amwell as the tech giant continues to be interested in healthcare, deep pockets, and a long list of customers. Both companies say their goal is to combine their respective technologies and backgrounds for multiple use cases, such as B. Optimizing the telemedicine experience by automating billing and reception processes in the waiting room, language translation in real-time, and the offer of data analysis for the health of the population and the digitization of routine. Tasks for payer and supplier.
Under the agreement, Amwell will migrate some of its business from the Amazon Web Services it currently uses to Google Cloud. Payers and providers have migrated from on-premise hosting to the cloud, sparking massive partnerships between tech companies and traditional healthcare companies looking to leverage the latest technology in their operations. Current Google Cloud healthcare customers include healthcare systems such as Mayo Clinic, Cleveland Clinic, Ascension, and Kaiser Permanente, as well as telemedicine provider Doctor on Demand.
Teladoc is located on Microsoft’s Azure cloud platform.
Amwell experienced massive volume spikes in COVID-19, CEO Roy Schoenberg told Healthcare Dive earlier this year, with a 4,000% increase in some cases. In May, Amwell raised nearly $ 200 million in funding from the lawsuit, bringing his total jackpot to $ 711 million in eight rounds.
In its IPO filing with the SEC on Monday, Amwell announced that it had made over 2.9 million telemedicine visits in the first six months of 2020. This is more than half of the total of 5.6 million visits that Amwell has performed since its inception.
The number of shares and the value of this gift is still unknown. However, in his filing, Amwell said that sales in the first half of 2020 increased 77% year-over-year from $ 69 million to $ 122 million. However, the Boston-based company’s net loss nearly tripled over the same period, from $ 42 million in the first half of 2019 to $ 113 million this year.
Amwell has filed for the listing of its common stock on the New York Stock Exchange under the symbol AMWL.