Everlywell Valued at $2.9 Billion With PWNHealth Deal

(Bloomberg) -- Digital health business Everlywell is valued at $2.9 billion after acquiring PWNHealth and Home Access Health Corp. in a cash and stock deal, according to people familiar with the matter.

The companies will be combined under a newly formed parent company, Everly Health, according to a statement Wednesday. The Austin, Texas-based business saw strong growth during the coronavirus pandemic, as consumers turned to Everlywell for home Covid-19 testing as well as other health diagnostic kits.

Everlywell, whose founder appeared on entrepreneur-oriented television show “Shark Tank,” announced a financing round last year that valued the company at $1.3 billion. Its investors include Shark Tank’s Lori Greiner, Blackrock, Lux Capital and Goodwater Capital.

Strong sales growth combined with synergies from the acquisition helped its valuation more than double, said the people, who asked not to be identified because the information was private. Everlywell’s sales grew to almost $200 million last year, one of the people said.

A representative for Everlywell declined to comment on the company’s valuation and sales.

Everlywell Founder and Chief Executive Officer Julia Cheek said she expects the shift in consumer behavior during during the past year to outlast the pandemic.

“It has been a watershed moment for digital health,” Cheek said, adding that some customers will continue to prefer the ease of doing things at home. Everlywell’s services include tests for sexually transmitted illnesses and heart health and colon cancer screenings.

Everlywell previously had a partnership with PWNHealth, a clinician network for diagnostic testing.

“It just made sense to really bring our culture and ethos together under one brand,” Cheek said.

She said the company is open to making other technology-related acquisitions.

Everlywell has been approached by special purpose acquisition companies, or SPACs, about going public through a merger, said Cheek, who said that for now she’s most focused on integrating the newly acquired business.

“We’ve made no decisions on when we would go public or which vehicles yet,” she said.

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