Google-Backed Amwell Go Public Thursday

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Google-backed telehealth company American Well Corp could raise up to $ 560 million when it goes public on Thursday.

American Well or Amwell is offering 35 million shares for $ 14 to $ 16, according to regulatory filings.

The Boston company offers a digital platform that connects doctors with their patients. Amwell said it has operated more than 5.6 million telehealth visits for its customers since 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,

Teldok Healthcare

(Ticker: TDOC), agreed to merge with $ 18.5 billion

Livongo Health

(LVGO) in August.

Roy and Birds Schoenberg, who are brothers, founded Amwell in 2006. The brothers serve as co-CEOs of Amwell. According to the regulator, after the IPO, Ross being the chairman (Amul is the chairman.) Will each hold 25.5% of the total voting power.

Amwell’s clients include 150 health systems such as New York-Presbyterian and Northwell Health, 55 health plans such as Anthem (ANTM) and several Blue Cross Blue Shield partners. Companies like

Oracle

(ORCL),

Campbell Soup The co

(CPB) and Wellpath also use Amwell to provide telehealth services, the company’s website said.

The Kovid-19 epidemic has given Amwell a boost, which is seeing increased demand for remote access for providers. The regulator said that Amwell’s visits in April exceeded 40,000 a day, up from 2,9900.

Amwell is not profitable. The company’s loss to revenue was $ 86.7 million in the quarter ended June 30, compared to $ 68.6 million in revenue. This compares to $ 19.6 million in revenue to $ 35.4 million in revenue for the same period in 2019. Although Amwell does not have any debt, it is expected that it will continue to incur losses in future years.

The company is expected to trade on the New York Stock Exchange on Thursday under the ticker AMWL. Underwriters on the deal include Morgan Stanley (MS), Goldman Sachs Group (GS), and Piper Sandler.

In August, Google, the entity

Alphabet

(GOOGL) agreed to invest $ 100 million in Amwell through a private placement. The deal calls for Amwell to move part of its video capabilities to the Google Cloud Platform.

The S-1 filing states that the company has selected Google as a global cloud platform partner for telehealth trips. Google will have 3.03% of Am3 common stock after the IPO.

Write Louisa Beltran at [email protected]