Alphabet's (NASDAQ:GOOG)(NASDAQ:GOOGL) Google Cloud unit is about to buy into the fast-growing telehealth segment with a $100 million investment into Class C shares of Amwell, a company that has filed to launch an initial public offering. The investment will be made at the same time as the IPO, and the number of shares Google Cloud receives will be in accordance with the IPO price.
Google Cloud and Amwell announced this in a joint press release Monday. They added that as part of the deal, the former would become the latter's "preferred global cloud platform partner." In practical terms, this means Amwell will shift some video performance capabilities to Google Cloud.
Additionally, the two companies will team up to develop new telehealth technologies, and endeavor to bring such services to "underserved" groups of people. Telehealth is still at a very early stage of development, but has seen a dramatic rise in interest and visits due to the stay-at-home measures stemming from the coronavirus pandemic.
Google Cloud and Amwell said that the latter will utilize the $100 million to develop its various offerings.
Previously known as American Well, Amwell's revenue for the first six months of 2020 rose by 77% to just over $122 million, while net loss deepened to nearly $114 million from the year-ago deficit of $41.6 million.
On an operational basis, Amwell's platform has seen a dramatic rise during the coronavirus pandemic. In the first six months of this year, its clients completed 2.9 million visits its the telehealth service, nearly three times the amount for the entirety of 2019.
Amwell has not yet set a date nor a per-share price for its IPO.