Seattle-based Accolade introduced Thursday that it’s going to pay $460 million to amass 2nd.MD, a Houston, Texas-based firm that helps sufferers get professional medical opinions by video or telephone.
The deal, a mixture of inventory and money, will beef up Accolade’s platform that helps staff of its clients perceive their well being plans and advantages.
“Each corporations have constructed deep relationships with employers and well being plans by serving to staff navigate the more and more advanced and inconsistent healthcare system,” Accolade CEO Raj Singh stated in a statement. “With the addition of 2nd.MD, we’ll almost double our whole addressable market whereas offering probably the most complete, built-in healthcare navigation expertise accessible.”
Shares of Accolade had been up greater than 10% in after-hours buying and selling Thursday.
Accolade will combine 2nd.MD into its platform, providing customers a method to get one other opinion when going through high-cost and complicated medical selections. Some studies present that getting a second opinion can result in utterly new diagnoses.
2nd.MD says it may possibly present recommendation inside three to 5 days, versus the trade common of a number of weeks. It would proceed to be provided as a standalone service. The corporate, based in 2011, analyzes medical information and has greater than 900 medical specialists that cowl varied grownup and pediatric specialty situations. It has greater than 300 employers as clients, along with well being plans, and reported about $35 million in income final 12 months.
Curiosity in digital healthcare is on the rise amid the pandemic as folks search for medical recommendation with out going to a bodily physician’s workplace. World VC funding to digital well being corporations reached a file $10.three billion via the primary 9 months of 2020, up 43% year-over-year, based on Mercom Capital Group.
Accolade, which went public in July, reported income of $36.eight million for its fiscal second quarter and a lack of $15.four million. The corporate serves greater than two million members and 100 clients.
Earlier in 2020 Singh stated a few of its largest clients equivalent to airways had been impacted severely by COVID-19, which may negatively influence the corporate’s member base and income.
However COVID-19 can be serving to Accolade’s enterprise. The corporate has been capable of carry different company clients aboard with new companies designed to assist staff navigate the fallout from the pandemic. Final 12 months the corporate rolled out a COVID Response Care program, together with psychological well being assist in partnership with psychological well being service Ginger.
Shares of Accolade have almost greater than doubled because it raised $220 million at a valuation of $1.2 billion in July.
Accolade, primarily based in each Seattle and Philadelphia, was based in 2007 by Michael Cline and Tom Spann. The corporate has been led since 2015 by Singh, who beforehand co-founded journey expense software program large Concur, which offered to SAP for $eight.three billion in 2014. Concur co-founder Mike Hilton is the Accolade chief product officer.