Transcarent, a digital platform focused on the self-insured employer market, announced it finalized its merger with Accolade, a virtual healthcare and benefits navigation company, in a deal worth $621 million.
Transcarent announced that it was acquiring Accolade and taking it private in January. Accolade is now an indirect wholly owned subsidiary of Transcarent.
In a statement, the company said that Accolade shareholders will receive $7.03 per share in cash. As of April 7, Accolade was trading at $7.02.
Financing for the acquisition was led by General Catalyst and CEO Glen Tullman’s 62 Ventures as well as existing and new investors.
Transcarent provides a digital platform aimed at improving the health experience by connecting patients with doctors who can help manage oncology care and plan surgeries and rehabilitation. The company’s focus is on cancer, surgery and weight health.
Accolade offers virtual healthcare and benefits navigation services. Accolade’s platform is focused on boosting health plans and employer-benefits engagement. The company’s True Health Actions platform takes data from employers and health plans, electronic medical records and other datasets to generate an individual member profile.
Transcarent will integrate its AI-powered WayFinding, comprehensive care experiences and pharmacy benefit offerings with Accolade’s healthcare advocacy, medical opinion and virtual primary care.
WayFinding is an AI-enabled, consumer-facing platform that offers clinical guidance, benefits navigation and care delivery.
The combined organizations will provide a one-stop shop for 20 million members and more than 1,700 employer and health plan customers.
“Transcarent and Accolade coming together is an important step to make it easier for everyone to access the high-quality, affordable health and care they deserve,” Glen Tullman, CEO of Transcarent, said in a statement.
“Whether that’s meeting virtually with their trusted primary care physician, instant connection to a Care Advocate, or getting care for complex needs like cancer treatment or surgery. Adding Accolade’s people and capabilities will significantly enhance our existing offerings.”
THE LARGER TREND
In 2024, Transcarent secured a $126 million Series D investment. The funds brought the company’s total raise to $450 million and valuation to $2.2 billion.
General Catalyst and 7wireVentures led the round, with participation from new investors Memorial Hermann Health System and Geodesic Capital.
Transcarent used the funds to speed up its AI capabilities and boost strategic and commercial growth.
In 2023, Transcarent partnered with ViewFi to deliver virtual orthopedic and musculoskeletal care to patients through Transcarent’s Consult Solution.
ViewFi powers Transcarent’s Orthopedic Consult Solution, part of its Surgery Care experience, permitting members to undergo a virtual diagnostic exam by “top-quality” orthopedic physicians and surgeons in less than two days via Transcarent’s app.
That same year, Transcarent acquired assets from 98point6, including its AI-enabled virtual care platform and care business.
The deal was worth up to $100 million and included 98point6’s business with self-insured employers, health systems and payers, and an affiliated medical group.
In 2023, Accolade cut its staff and downsized its office footprint. At the time, the company declined to comment on the number of employees impacted by the layoffs, but in a filing with the Securities and Exchange Commission (SEC), CFO Stephen Barnes said Accolade was “accelerating the integration of recent acquisitions” and making strategic reductions in the company’s workforce.
The company also announced it closed or cut back on some satellite facilities and relocated some non-customer-facing roles to new locations.
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