One of the biggest providers of consumer telehealth services to health systems, insurers and others has scored its biggest single investor deal to date.
American Well, a Boston-based provider to health systems such as NewYork-Presbyterian, Northwell Health and Intermountain Healthcare, has raised $59 million under the terms of a new investor deal with Allianz X, the digital technology investment arm of Allianz Group.
Allianz is one of the world’s biggest financial services, insurance and reinsurance companies headquartered in Munich, Germany. Specific terms of the deals were not announced, but Allianz X and the Health Innovation Center of Allianz Partners, another company business unit, will work with American Well to develop a broader suite of telehealth-based products and services, Allianz says.
New areas for potential development include building on American Well’s telehealth platform and Allianz’s international expertise with combining wearable sensors and remote monitoring and virtual healthcare. “This collaboration emphasizes Allianz’s commitment to digitalization, our goal of investing in digital frontrunners and encourages advancements within the whole healthcare ecosystem,” says Allianz Group chief digital officer Solmaz Altin.
For American Well the deal represents the privately held company’s single biggest investment deal so far and a chance to expand the company internationally. Including the new investment money from Allianz American Well has raised about $210 million in six years, according to Crunchbase. Before Allianz, American Well raised $81 million from Anthem Health and Jefferson Health System among other investors in November 2014.
International expansion is a key objective for American Well. “Advancing global health digitally is a big mission, and one we know we cannot accomplish alone,” says American Well CEO Ido Schoenberg.
Allianz has local knowledge of healthcare financing, regulation and delivery and a qualified network of more than 800,000 medical providers across the world, which American Well will seek to leverage to grow internationally, the telehealth company says.
The investment in American Well is the first in series of deals Allianz X will use to build a new digital strategy under a new CEO. In November Allianz announced it would no longer invest solely in digital healthcare start-up operations, but instead invest in more established companies in niches such as mobility, connected property, connected health, wealth management and retirement, and data intelligence and cybersecurity.
Allianz also named Nazim Cetin as Allianz X’s new CEO. He previously served as co-CEO.
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