Transcarent finalizes merger with Accolade

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 price $621 million.

Transcarent introduced that it was buying Accolade and taking it personal in January. Accolade is now an oblique wholly owned subsidiary of Transcarent.

In an announcement, the corporate stated 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 Common Catalyst and CEO Glen Tullman’s 62 Ventures in addition to current and new buyers.

Transcarent gives a digital platform geared 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 gives digital healthcare and advantages navigation companies. 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 provides 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, stated 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 take care of complicated wants like most cancers remedy or surgical procedure. Including Accolade’s folks and capabilities will considerably improve our current choices.”

THE LARGER TREND

In 2024, Transcarent secured a $126 million Collection D funding. The funds introduced the corporate’s whole increase 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 increase strategic and industrial progress.

In 2023, Transcarent partnered with ViewFi to ship digital orthopedic and musculoskeletal care to sufferers by 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 bear a digital diagnostic examination by “top-quality” orthopedic physicians and surgeons in lower than two days by way of Transcarent’s app. 

That very same 12 months, 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 methods and payers, and an affiliated medical group.

In 2023, Accolade reduce 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 Change Fee (SEC), CFO Stephen Barnes stated Accolade was “accelerating the combination 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 services and relocated some non-customer-facing roles to new areas.