Glen Tullman, chairman and chief executive officer at Livongo Health Inc., speaks during the 2015 Bloomberg Technology Conference in San Francisco, California, U.S., on Tuesday, June 16, 2015.
David Paul Morris | Bloomberg | Getty Images
Digital health startup Transcarent on Tuesday announced it completed its acquisition of Accolade in a deal valued at roughly $621 million.
Transcarent first announced the acquisition in January, and the company said it has received all necessary shareholder and regulatory approvals to carry out the transaction. Accolade shareholders received $7.03 per share in cash, and its common stock will no longer trade on the Nasdaq, according to a release.
“Adding Accolade’s people and capabilities will significantly enhance our existing offerings,” Transcarent CEO Glen Tullman said in a statement. “We’re creating an entirely new way to experience health and care. We are truly better together.”
Transcarent offers at-risk pricing models to self-insured employers to help their workers quickly access care and navigate benefits. As of May, the company had raised around $450 million at a valuation of $2.2 billion. Transcarent also earned a spot on CNBC’s Disruptor 50 list last year.
Accolade offers care delivery, navigation and advocacy services. The company went public during the Covid pandemic in 2020 as investors began pouring billions of dollars into digital health, but the stock tumbled in the years following.
Accolade is the latest in a string of digital health companies to exit the public markets as the sector struggles to adjust to a more muted growth environment.
Transcarent said the executive leadership team will report to Tullman and includes representatives from both organizations. Accolade’s Kristen Bruzek will serve as executive vice president of care delivery operations, for instance.
Tullman is no stranger to overseeing major deals in digital health. He previously helmed Livongo, which was acquired by the virtual-care provider Teladoc in a 2020 agreement that valued the company at $18.5 billion.
General Catalyst and Tullman’s 62 Ventures led the acquisition’s financing, with additional participation from new and existing investors, the release said. The companies also leveraged cash from their combined balance sheet, and JP Morgan led the debt financing.
