Accolade, an worker advantages firm that went public final yr, on Friday mentioned it plans to purchase direct-to-consumer digital main care startup PlushCare for as much as $450 million.
Accolade, which sells healthcare navigation and engagement instruments to employers, pays $40 million in money and $340 million in Accolade frequent inventory to amass privately held PlushCare, in keeping with the phrases of the settlement. The corporate might pay as much as a further $70 million based mostly on income milestones following the acquisition’s closing.
After the acquisition closes, Seattle-based Accolade will start providing digital main care and psychological well being companies to members by San Francisco-based PlushCare’s community of clinicians. The corporate’s primary-care and internist physicians seek the advice of with sufferers through textual content messaging and video telehealth and might order prescriptions and laboratory assessments.
“Up till right this moment, our scientific interventions have been designed to supply customized steerage to members to assist their healthcare decision-making as they entry care,” mentioned Accolade CEO Rajeev Singh in an announcement. “With the addition of PlushCare, we’ll start delivering care on to our members.”
Providing digital main care and psychological well being is an “important step” for the corporate’s imaginative and prescient of bettering well being outcomes and lowering prices, in keeping with Singh. He mentioned Accolade sees digital main care as being a bit of healthcare, not as one thing that may totally substitute in-person main care.
Accolade mentioned the acquisition will increase its complete addressable market practically five-fold to an estimated $200 billion.
PlushCare will proceed to supply its companies—in addition to engagement, navigation and knowledgeable medical opinion companies from Accolade—to its client members.
PlushCare earned roughly $35 million in income for full-year 2020. Accolade, which went public in July at a $1.2 billion valuation, will launch its full-year fiscal 2021 earnings in Could. It posted preliminary, unaudited monetary leads to March, through which the corporate mentioned it expects to report fiscal 2021 income within the vary of $168 million to $169 million.
Accolade expects to report a web loss for fiscal 2021 within the vary of $53 million to $51.5 million.
Accolade’s inventory was $48.73 at midday Jap Daylight Time following the information Friday, up from $45.84 at market shut Thursday.
Accolade’s PlushCare buy is simply the most recent instance of mergers and acquisitions exercise within the telehealth area.
Cigna Corp. on Monday acquired MDLive. Physician On Demand and Grand Rounds final month unveiled plans to merge. Teladoc Well being final yr merged with Livongo, a digital well being firm that helps customers handle persistent situations, and purchased InTouch Well being, a telehealth firm that serves the supplier market.
In March, Accolade acquired 2nd.MD for as much as $460 million, by which members search second medical opinions from specialists earlier than high-cost remedy choices.
Accolade expects the PlushCare acquisition to shut in early June.