Transcarent to Acquire Accolade for $621M
Deal News | Jan 08, 2025 | 7Wire Ventures LLC
In a strategic healthcare industry move, Transcarent has announced its acquisition of Accolade for $7.03 per share, translating to a total equity value of around $621 million. This merger, set for completion in the second quarter of 2025, aims to unify Transcarent's AI-powered healthcare solutions with Accolade's expertise in advocacy, expert medical opinions, and primary care. Transcarent's WayFinding will coordinate with Accolade to offer a cohesive platform targeting consumer empowerment by streamlining healthcare experiences, reducing costs, and enhancing quality. The transaction will be facilitated by significant backing from General Catalyst and Glen Tullman's 62 Ventures. Furthermore, Accolade's board unanimously supports the merger, emphasizing its alignment with the company's mission of enhancing healthcare decision-making. Regulatory approvals remain a decisive factor for the merger's completion.
Sectors
- Healthcare
- Private Equity
- Technology
Geography
- United States – The companies Transcarent and Accolade are headquartered in the U.S., with San Francisco, CA, and Seattle, WA mentioned as key locations.
Industry
- Healthcare – The article discusses a merger between two healthcare companies, aiming to create a comprehensive healthcare platform integrating various healthcare services.
- Private Equity – The involvement of 7Wire Ventures and General Catalyst in financing the transaction indicates significant private equity interests in the strategic healthcare merger.
- Technology – Transcarent's integration of generative AI solutions with Accolade's platform illustrates the critical role of technology in evolving healthcare services.
Financials
- 621M – Total equity value of the acquisition of Accolade by Transcarent.
- 7.03 – Cash per share to be received by Accolade shareholders in the acquisition.
- 110% – Premium over Accolade's closing stock price prior to the public disclosure of the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Transcarent | Bidding Company | Company | A healthcare company focused on AI-driven solutions to improve healthcare accessibility and affordability. |
| Accolade | Target Company | Company | A provider of personalized healthcare solutions, specializing in health advocacy, expert medical opinions, and virtual primary care. |
| 7Wire Ventures LLC | Private Equity Company | Company | A venture firm known for investing in transformative healthcare solutions, involved in this transaction. |
| General Catalyst | Investment Firm | Company | An investment firm leading the equity financing for the transaction. |
| Evercore | Financial Advisor | Company | Served as the exclusive financial advisor to Transcarent in this merger. |
| Wilson Sonsini Goodrich & Rosati | Legal Advisor | Company | Provided legal advisory services to Transcarent for the transaction. |
| Morgan Stanley & Co. LLC | Financial Advisor | Company | Acted as the exclusive financial advisor to Accolade. |
| Cooley LLP | Legal Advisor | Company | Provided legal advisory services to Accolade in this transaction. |