Transcarent, a digital platform centered on the self-insured employer market, introduced it finalized its merger with Accolade, a digital healthcare and advantages navigation firm, in a deal value $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 an announcement, the corporate mentioned that Accolade shareholders would 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 Common Catalyst and CEO Glen Tullman’s 62 Ventures in addition to current and new buyers.
Transcarent supplies a digital platform aimed toward enhancing the well being expertise by connecting sufferers with docs who can assist handle oncology care and plan surgical procedures and rehabilitation. The corporate’s focus is on most cancers, surgical procedure and weight well being.
Accolade provides digital healthcare care and advantages navigation providers. Accolade’s platform is concentrated on boosting well being plans and employer-benefits engagement. The corporate’s True Well being Actions platform takes knowledge from employers and well being plans, digital medical information 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 steerage, advantages navigation and care supply.
The mixed organizations will present a one-stop-shop for 20 million members and greater than 1,700 employer and well being plan clients.
“Transcarent and Accolade coming collectively is a crucial step to make it simpler for everybody to entry the high-quality, reasonably priced well being and care they deserve,” Glen Tullman, CEO of Transcarent, mentioned in an announcement.
“Whether or not that is assembly just about with their trusted main care doctor, on the spot connection to a Care Advocate, or getting look after complicated wants like most cancers remedy or surgical procedure. Including Accolade’s individuals and capabilities will considerably improve our current 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.
Common 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 progress.
In 2023, Transcarent partnered with ViewFi to ship digital orthopedic and musculoskeletal care to sufferers by way of Transcarent’s Seek the advice of Answer.
ViewFi powers Transcarent’s Orthopedic Seek the advice of Answer, a part of its Surgical procedure Care expertise, allowing members to endure a digital diagnostic examination by “top-quality” orthopedic physicians and surgeons in lower than two days through Transcarent’s app.
That very same 12 months, Transcarent acquired property from 98point6, together with its AI-enabled digital care platform and care enterprise.
The deal was value 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 minimize 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 Trade Fee (SEC), CFO Stephen Barnes mentioned Accolade was “accelerating the mixing of current 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 areas.
