Amwell Divests Psychiatric Care Business to Avel eCare, Focuses on Core Growth Initiatives

Divestiture:
Amwell has sold its Amwell Psychiatric Care (APC) business to Avel eCare for approximately $21 million in cash, aiming to concentrate on key growth initiatives and enhance its digital care platform24.

Financial Projections:
Amwell expects revenue between $335 million and $350 million in 2025, with an EBITDA loss of $35 million to $45 million. The company aims for adjusted EBITDA breakeven by 202613.

Growth Strategy:
The divestiture allows Amwell to sharpen its focus on core growth areas, drive greater efficiencies, and better align with evolving client needs in the digital health market24.

Partnership and Services:
Amwell continues to support behavioral health services through its affiliated clinical partner, Amwell Medical Group, and reiterated its financial guidance for 202424.

Future Outlook:
Amwell's financial story is expected to change dramatically in 2025, driven by go-lives of contracted software backlog, including planned enterprise-wide DHA deployments3.

Sources:

1. https://www.investing.com/news/stock-market-news/earnings-call-amwell-reports-positive-q2-2024-results-raises-ebitda-outlook-93CH-3548853

2. https://www.quiverquant.com/news/Amwell+Divests+Psychiatric+Care+Business+to+Avel+eCare,+Reiterates+2024+Guidance

3. https://www.fiercehealthcare.com/health-tech/amwell-posts-679m-loss-plots-accelerated-growth-2025-boosted-major-defense-contract

4. https://hitconsultant.net/2025/01/09/amwell-divests-psychiatric-care-business-to-avel-ecare-for-21m/