LifeSpeak Completes Acquisition of US-Based Wellbeats, Solidifying Its Lead Position in the SaaS Mental Health and Total Wellbeing Market
- This News Release Is Intended for Distribution in Canada Only and Is Not Intended for Distribution to United States Newswire Services or Dissemination in the United States
LifeSpeak Inc., the leading mental health and total wellbeing platform for employers, health plans, and insurance companies, announced that it has completed its previously disclosed acquisition of Minnesota-based Wellbeats Inc., a market-leading provider of an on-demand, software-as-a-service (“SaaS”) physical wellbeing platform.
“We are very excited to welcome Wellbeats to the LifeSpeak family of companies”
With a combined 30 years of experience as respective leaders in digital health education and physical wellbeing, the acquisition of Wellbeats amplifies LifeSpeak’s ability to meet rapidly growing demand from organizations for a comprehensive, single-vendor solution to meet mental and physical health support needs. Wellbeats’ best-in-class physical wellbeing SaaS technology and 400+ U.S. and international enterprise clients expand and enrich LifeSpeak’s mental health and wellness support capabilities, while strengthening its position within the U.S. market and offering tremendous opportunity to cross-sell value-add solutions to new and existing clients and partners.
HR Technology News: Quantum Health Launches New Preferred Partners Program to Give Consumers a Better Healthcare Experience and Deliver Better Results for Employers
On a pro forma basis, LifeSpeak is expected to have 800+ enterprise and embedded solutions clients and approximately $54.4 million of ARR as at December 31, 2021 (which is the mid-point of the ARR estimates as detailed in LifeSpeak’s February 14, 2022 news release).
“We are very excited to welcome Wellbeats to the LifeSpeak family of companies,” said Michael Held, CEO, LifeSpeak. “The connection between mind and body is increasingly recognized as being critical to wellbeing, as better physical health and better mental health are highly correlated. This makes the addition of Wellbeats highly complementary to LifeSpeak’s growing portfolio of digital health offerings and provides us with an extremely well recognized, market leading, on-demand physical wellness platform which broadens and deepens our core B2B offering.”
HR Technology News: Talent Marketplace Torc Announces Public Launch With Backing of Recognize Partners, Asymmetric Capital Partners
The transaction is well aligned with LifeSpeak’s core acquisition criteria, and offers the following key benefits to LifeSpeak:
- A best-in-class and complementary B2B SaaS-based product offering: Wellbeats’ award-winning solution represents a strategic extension and enhancement of LifeSpeak’s digital, B2B-focused wellbeing platform and enables LifeSpeak to further address the critical needs of its client base with additional on-demand access to large and scalable physical wellbeing, health, and nutrition virtual resources.
- A large, sticky, and non-overlapping enterprise client base with a diverse geographic presence: Wellbeats will significantly increase LifeSpeak’s client count with the addition of 400+ net new global enterprise clients, bringing total LifeSpeak clients to 800+. Substantial cross-sell opportunities within LifeSpeak’s existing and net new client base, as well as additional paths to market, including new channel partners, augment LifeSpeak’s sales strategy while enhancing revenue opportunities across the client portfolio.
- A strong team with complementary skillsets and long-term strategic alignment: The Wellbeats team joins LifeSpeak with decades of experience and long-term strategic alignment in its core mission. Wellbeats’ international experience and presence accelerates LifeSpeak’s global growth efforts through the addition of strong senior management and an experienced U.S. salesforce.
- A similar financial profile: Wellbeats maintains comparable fundamental financial metrics to LifeSpeak and is expected to accelerate LifeSpeak’s overall growth strategy and enhance financial performance into 2022 and beyond.
Upon closing of the transition, LifeSpeak is pleased to welcome Jason Von Bank, President, and CEO of Wellbeats, to the Company’s executive team in the role of Chief Operating Officer of LifeSpeak.
Concurrent with the completion of the transaction, LifeSpeak entered into a new $97.5 million revolving credit facility with Scotiabank’s Technology Innovation and Banking Group and Desjardins Capital Markets, with terms as previously announced, and completed the previously announced $22 million private placement of 2,953,020 common shares at a price of $7.45 per common share. At the closing of the transaction, net debt (i.e., all borrowings less cash on hand), including the net proceeds of the private placement, was approximately $70 million.
HR Technology News: ASM Global Acts Foundation Launches College Scholarship Opportunities Throughout the US
[To share your insights with us, please write to sghosh@martechseries.com]