Transcarent has pulled apart one of the biggest health technology transactions of the year. The digital health startup announced on Tuesday that it has officially completed its $621 million acquisition of Accolade.
The agreement, first announced in January, received full shareholder and regulatory approval. The praised shareholders have left with $7.03 per share of cash and are currently registered by Nasdaq. This is the latest indication of public digital health companies shifting from Wall Street as growth cools across the sector.
Transcarent completes a $621 million acclaimed merger to serve members over 20m with AI-powered care
“Today, Transcarent announced the successful completion of its market leading health advocacy, expert medical opinions and the merger with virtual primary care company Accolade. The total organization currently serves more than 20 million members and over 1,700 employers and health plan clients as a place of health and care,” the company said in a news release.
Transcarent CEO Glen Tullman, who led Livongo before the $18.5 billion exit to Teladoc, is once again making a big bet. “Adding people and capabilities to add praise will greatly improve existing products,” he said. “We’re creating a whole new way to experience health and care. We’re really good together.”
The merged company is not small. Transcarent says it currently serves more than 20 million members and works with over 1,700 employers and health plan clients. pitch? One place to handle care – from virtual primary care to cancer treatments, and everything in between.
Transcarent was already known to provide a self-insured employer pricing model related to outcomes. With the acquisition, the company now has experience in advocacy for health advocacy, medical opinions and virtual care. Tullman wants to make care as easy as getting ride shares for a combined platform.
That AI layer is a big part of the story. Transcarent’s Wayfinding Platform and Acrolade’s true health behavior draws from a deep stack of health data to guide member options. Whether understanding treatment plans, obtaining a second opinion, or scheduling care, the goal is to make decisions easier and reduce unnecessary steps along the way.
The leadership team combines talent from both sides. Talman remains as CEO, with Snezana Mahon stepping into the role of president. The executive bench includes product leaders, technology, clinical strategies, and more. Kristen Bruzek of Acrolade leads the care delivery business.
The $621 million deal was funded by 62 ventures, General Catalyst and Tullman, with additional funding from both new and old supporters. Cash from the combined companies and debt financing from JP Morgan helped seal the transaction.
Released in 2020 during the digital health boom in the Covid era, Accolade struggled a few years after the IPO. Currently, the focus is on a growing list of health technology companies that have left open markets as they move from growth to scale, efficiency and real results at any cost.
For Tullman and the Team, the message is clear. Digital health is not shrinking. It’s being rebuilt. And they plan to be at the heart of it.
🚀Want to share the story?
Submit your stories to TechStartUps.com in front of thousands of founders, investors, PE companies, tech executives, decision makers and tech leaders.
Please attract attention
Source link
