US-based healthcare platform Transcarent has agreed to acquire Accolade, a provider of health advocacy, expert medical opinions, and primary care, for up to $621m.
Under the terms of the agreement, Transcarent will acquire Accolade shares at $7.03 per share in cash, which is around a 110% premium to Accolade’s last closing stock price.
The Board of Directors of both companies unanimously approved the transaction.
The transaction is expected to be completed in the second calendar quarter of 2025, subject to stockholder approval, regulatory approvals, and other customary closing conditions.
Upon closing, the two companies will work together to ensure a smooth integration process.
Accolade will become a private company and its stock will be delisted from Nasdaq.
Transcarent intends to fund the transaction through fully committed equity financing led by General Catalyst and Glen Tullman’s 62 Ventures.
As part of the transaction, General Catalyst CEO and managing director Hemant Taneja will be appointed as a member of Transcarent’s Board of Directors.
Taneja said: “We are excited to double down on creating a powerful AI platform enabling consumers to take charge of their care. Since Glen and I created Transcarent, our vision has been to transform healthcare at scale and this acquisition brings us closer to that vision.”
Transcarent CEO Glen Tullman said: “Our clients – employers and health plans and the people who work for them or who they serve – are telling us that healthcare today is too confusing, too complex, and too costly.
“We have a solution that finally makes it easy to access high-quality health and care and deliver lower costs for the people who pay for care – employers, and all of us.
“This combination will accelerate that process, and I consider it a perfect fit, adding great people to our team and expanding choice and access for our clients and their employees and their families.”
The transaction will bring Accolade’s Personalised Healthcare Platform and its expertise in advocacy, expert medical opinions (EMO), and primary care.
Transcarent will integrate its AI-powered WayFinding, along with Cancer Care, Surgery Care, Weight Health, and its Pharmacy Benefit offerings with Accolade’s platform.
The integrated platform will provide better experience, quality care, and reduced costs for consumers, the companies who employ them, and the payers who support them.
Evercore served as the exclusive financial advisor, and Wilson Sonsini Goodrich & Rosati, Professional Corporation as legal advisor to Transcarent on the transaction.
Also, Morgan Stanley & Co. served as the exclusive financial advisor and Cooley as the legal advisor to Accolade.
Accolade CEO Rajeev Singh said: “Joining forces with Transcarent allows us to expand our mission of empowering people to make the best decisions for their health and wellbeing.
“The two companies share a focus on embracing AI and advanced technology to change the way consumers experience the healthcare system.
“Combining Transcarent’s complex care experience with Accolade’s people and 16 years of healthcare data, we will create a more personalised healthcare experience for people while improving outcomes and driving down costs.”
