UpHealth Completes Sale of Cloudbreak Health at $180 Million Full Cash Deal

DELRAY BEACH, Fla., March 18, 2024 (GLOBE NEWSWIRE) -- UpHealth, Inc. (“we,” “our,” “UpHealth,” or the “Company”) (NYSE: UPHL) today announced that it completed its previously announced sale of Cloudbreak Health, LLC (“Cloudbreak”), best known for its Martti translation offering, to a newly formed entity controlled by GTCR LLC for $180 million in gross cash proceeds on March 15, 2024.

The $180 million in gross proceeds will be used to pay all closing expenses including any potential liability for taxes on the sale and paying down the Company’s debt, including all of the Company’s $115 million 2026 Notes and a substantial portion of its $57.2 million 2025 Notes.

“This transaction is one more critical milestone in the last three years of UpHealth, Inc.’s journey to focus the Company on its strategic core and most profitable businesses. This major restructuring includes so far, shutting down the non-profitable businesses that also presented challenging legal risks, as well as divesting and selling profitable businesses that did not have a good strategic fit to our mission. The sale announced today of Cloudbreak, and the sale of IGI in May 2023 in a $56 million cash deal, have together generated to the Company about $235 million of cash that has allowed us to significantly reduce the liabilities of the Company and enhance its business focus and the financial performance, all resulting in unlocking meaningful value to our stakeholders. Moving forward we will focus solely on the very important purposed behavioral health business as we enhance investments in the profitable TTC Healthcare operation.” said Dr Avi Katz, Chairman of the Board of Directors.

“The Cloudbreak sale transaction will significantly deleverage our balance sheet, stabilize our business and empower us to concentrate our resources on TTC Healthcare,” said Martin Beck, Chief Executive Officer. “TTC is a profitable and cash-generating behavioral health business with an incredibly bright future and we look forward to working with our talented team to profitably scale and deliver high-quality care to more patients. We are proud to continue to increase our presence in the behavioral health sector which is one of the most critical healthcare verticals for all U.S. and global citizens, regardless of age, gender, sexual orientation, religion, nationality and ethnicity.”