Glen Tullman, chairman and chief executive officer at Livongo Health Inc., speaks in the course of the 2015 Bloomberg Technology Conference in San Francisco, California, U.S., on Tuesday, June 16, 2015.
David Paul Morris | Bloomberg | Getty Images
Digital health startup Transcarent on Tuesday announced it accomplished its acquisition of Accolade in a deal valued at roughly $621 million.Â
Transcarent first announced the acquisition in January, and the corporate said it has received all essential shareholder and regulatory approvals to perform the transaction. Accolade shareholders received $7.03 per share in money, and its common stock will not trade on the Nasdaq, in line with a release.
“Adding Accolade’s people and capabilities will significantly enhance our existing offerings,” Transcarent CEO Glen Tullman said in a press release. “We’re creating an entirely latest strategy to experience health and care. We’re truly higher together.”Â
Transcarent offers at-risk pricing models to self-insured employers to assist their employees quickly access care and navigate advantages. As of May, the corporate had raised around $450 million at a valuation of $2.2 billion. Transcarent also earned a spot on CNBC’s Disruptor 50 list last yr.
Accolade offers care delivery, navigation and advocacy services. The corporate went public in the course of the Covid pandemic in 2020 as investors began pouring billions of dollars into digital health, however the stock tumbled within the years following.
Accolade is the newest in a string of digital health corporations to exit the general public markets because the sector struggles to regulate to a more muted growth environment.Â
Transcarent said the manager leadership team will report back to Tullman and includes representatives from each organizations. Accolade’s Kristen Bruzek will function executive vp of care delivery operations, as an example. Â
Tullman is not any stranger to overseeing major deals in digital health. He previously helmed Livongo, which was acquired by the virtual-care provider Teladoc in a 2020 agreement that valued the corporate at $18.5 billion.
General Catalyst and Tullman’s 62 Ventures led the acquisition’s financing, with additional participation from latest and existing investors, the discharge said. The businesses also leveraged money from their combined balance sheet, and JPMorgan led the debt financing.
