Transcarent, a digital platform targeted on the self-insured employer market, introduced it finalized its merger with Accolade, a digital healthcare and advantages navigation firm, in a deal price $621 million.
Transcarent introduced that it was buying Accolade and taking it non-public in January. Accolade is now an oblique wholly owned subsidiary of Transcarent.
In a press release, the corporate mentioned that Accolade shareholders will obtain $7.03 per share in money. As of April 7, Accolade was buying and selling at $7.02.
Financing for the acquisition was led by Normal Catalyst and CEO Glen Tullman’s 62 Ventures in addition to present and new buyers.
Transcarent offers a digital platform geared toward bettering the well being expertise by connecting sufferers with docs who may help handle oncology care and plan surgical procedures and rehabilitation. The corporate’s focus is on most cancers, surgical procedure and weight well being.
Accolade affords digital healthcare and advantages navigation providers. Accolade’s platform is targeted on boosting well being plans and employer-benefits engagement. The corporate’s True Well being Actions platform takes information from employers and well being plans, digital medical data and different datasets to generate a person member profile.
Transcarent will combine its AI-powered WayFinding, complete care experiences and pharmacy profit choices with Accolade’s healthcare advocacy, medical opinion and digital main care.
WayFinding is an AI-enabled, consumer-facing platform that gives medical steering, advantages navigation and care supply.
The mixed organizations will present a one-stop store for 20 million members and greater than 1,700 employer and well being plan prospects.
“Transcarent and Accolade coming collectively is a crucial step to make it simpler for everybody to entry the high-quality, inexpensive well being and care they deserve,” Glen Tullman, CEO of Transcarent, mentioned in a press release.
“Whether or not that is assembly nearly with their trusted main care doctor, prompt connection to a Care Advocate, or getting look after complicated wants like most cancers remedy or surgical procedure. Including Accolade’s folks and capabilities will considerably improve our present choices.”
THE LARGER TREND
In 2024, Transcarent secured a $126 million Sequence D funding. The funds introduced the corporate’s whole elevate to $450 million and valuation to $2.2 billion.
Normal Catalyst and 7wireVentures led the spherical, with participation from new buyers Memorial Hermann Well being System and Geodesic Capital.
Transcarent used the funds to hurry up its AI capabilities and enhance strategic and business development.
In 2023, Transcarent partnered with ViewFi to ship digital orthopedic and musculoskeletal care to sufferers via Transcarent’s Seek the advice of Resolution.
ViewFi powers Transcarent’s Orthopedic Seek the advice of Resolution, a part of its Surgical procedure Care expertise, allowing members to bear a digital diagnostic examination by “top-quality” orthopedic physicians and surgeons in lower than two days through Transcarent’s app.
That very same yr, Transcarent acquired belongings from 98point6, together with its AI-enabled digital care platform and care enterprise.
The deal was price as much as $100 million and included 98point6’s enterprise with self-insured employers, well being programs and payers, and an affiliated medical group.
In 2023, Accolade lower its employees and downsized its workplace footprint. On the time, the corporate declined to touch upon the variety of workers impacted by the layoffs, however in a submitting with the Securities and Alternate Fee (SEC), CFO Stephen Barnes mentioned Accolade was “accelerating the mixing of latest acquisitions” and making strategic reductions within the firm’s workforce.
The corporate additionally introduced it closed or in the reduction of on some satellite tv for pc amenities and relocated some non-customer-facing roles to new places.
