UpHealth Announces Closing of Sale of Innovations Group Incorporated to Belmar Pharma Solutions for $56.0 Million in Gross Proceeds
May 11, 2023
~ Closing Represents Substantial Completed Milestone and Execution of Strategic Vision ~
~ Transaction Delivers $56.0 Million to Company’s Balance Sheet ~
DELRAY BEACH, Fla., May 11, 2023 (GLOBE NEWSWIRE) — UpHealth, Inc. (“UpHealth” or the “Company”) (NYSE: UPH), a global digital health company delivering technology platforms, infrastructure, and services to modernize care delivery and health management, today announced it has completed the divestiture of Innovations Group, Inc., (“IGI”), including its compounding pharmacy subsidiary, MedQuest Pharmacy, Inc., completing the asset sale to Belmar Pharma Solutions for $56.0 million in gross proceeds.
UpHealth Chief Executive Officer Sam Meckey commented, “Today’s closing delivers significant liquidity to UpHealth’s balance sheet providing the Company with solid financial footing to execute on our current initiatives and future growth plans. As we have previously communicated, 2023 is a recalibration year for UpHealth and execution of our strategic vision is our top priority. Proceeds from the sale will be used to invest in building a fully integrated platform to drive growth and to pay down a portion of our secured debt. With this major milestone now behind us, we are focused on execution and pivoting to growth.”
Bourne Partners acted as exclusive financial advisor, and DLA Piper LLP (US) acted as legal counsel, to UpHealth on the transaction.
About UpHealth, Inc.
UpHealth is a global digital health company that delivers digital-first technology, infrastructure, and services to dramatically improve how healthcare is delivered and managed. The UpHealth platform creates digitally enabled “care communities” that improve access and achieve better patient outcomes at lower cost, through digital health solutions and interoperability tools that serve patients wherever they are, in their native language. UpHealth’s clients include health plans, healthcare providers and community-based organizations. For more information, please visit https://uphealthinc.com and follow us at UpHealth Inc on LinkedIn.
Belmar began as a local compounding pharmacy in Denver, Colorado in 1985, and has since grown into a single source solution for prescribers, patients, and healthcare facilities all over the country. Belmar offers compounded medication, education, and consultation for hormonal, anti-aging, and integrative therapies, from compounding facilities located throughout the United States.
About Bourne Partners
Bourne Partners is a financial services firm specializing in the pharma, pharma services, OTC and consumer health sectors. Located in Charlotte, North Carolina, the company offers investment banking and advisory services. As owners and operators with over 20 years of experience, Bourne Partners strives to enrich the lives and improve the health and well-being of their partners and patients across the globe by facilitating the efficient movement of capital through the global healthcare sector. For more information, please visit here.
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, statements regarding the use of proceeds of the transaction, and UpHealth’s expectations, hopes, beliefs, intentions, plans, prospects, or strategies regarding its future business plans. Any statements contained herein that are not statements of historical fact may be deemed to be forward‑looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward‑looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of UpHealth in light of their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on UpHealth as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting UpHealth will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the ability of UpHealth to service or otherwise pay its debt obligations, the mix of services utilized by UpHealth’s customers and such customers’ needs for these services, market acceptance of new service offerings, the ability of UpHealth to expand what it does for existing customers as well as to add new customers, that UpHealth will have sufficient capital to operate as anticipated and the impact that the novel coronavirus and the illness, COVID-19, that it causes, as well as government responses to deal with the spread of this illness and the reopening of economies that have been closed as part of these responses, may have on UpHealth’s operations, the demand for UpHealth’s products, global supply chains and economic activity in general. Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.
UpHealth Investor Relations Contact
Shannon Devine (MZ North America)
Source: UpHealth, Inc.