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Last Month in Digital Health M&A: September 2019

Market Watch / October 1, 2019 / Leave a Comment

During the last month, we have caught the following digital health M&A deals…

Last Month in Digital Health M&AStryker to acquire Mobius Imaging & Cardan Robotics for up to $500M. An all cash transaction is worth approximately $370 million upfront and up to $130 million of contingent payments associated with development and commercial milestones. The acquisition provides Stryker’s Spine division with immediate entry into the intra-operative imaging segment and aligns with Stryker’s implant and navigation offerings. Mobius Imaging is focused on integrating advanced imaging technologies into medical workflow, which can enhance a clinician’s ability to obtain high-quality images. Its Airo TruCT scanner is a best-in-class mobile, real-time, diagnostic-quality CT imaging system. Cardan Robotics, on the other hand, is working to develop innovative robotics and navigation technology systems for surgical and interventional radiology procedures. • read more.

OptimizeRx to acquire digital therapeutics SaaS platform RMDY Health for $16M in cash and equity. OptimizeRx is a leader in bridging the communication gap between pharma and providers with its digital health messaging platform delivered through its nationwide network of leading EHR and ePrescribing providers. The addition of RMDY Health expands the reach of this network by using patient apps and web access as an additional channel for digital heath messaging. The acquisition adds three new client segments to OptimizeRx’s existing patient engagement platform ‐ payers, medtech and medical associations ‐ further simplifying chronic disease management and drug adherence for healthier results at lower costs. • read more.

Prudential Financial to acquire insurance startup Assurance IQ for $2.35B. Using a combination of advanced data science and human expertise, Assurance matches buyers with customized solutions spanning life, health, Medicare and auto insurance, giving them options to purchase entirely online or with the help of a technology-assisted live agent. Assurance’s innovative model also matches consumers with the live agent or specific sales process that is best suited to their needs, resulting in better customer outcomes that drive higher levels of engagement and conversion. This approach is underpinned by an ongoing shift in consumer preferences, whereby individuals increasingly begin their research for personalized financial services online and then seek consultation with human experts to complete their purchase. Terms of the acquisition include a total upfront consideration of $2.35 billion, plus an additional earnout of up to $1.15 billion in cash and equity, contingent upon Assurance achieving multi-year growth objectives. • read more.

TrialCard to acquire provider of mobile-based medication management and adherence solutions Mango Health. The Mango Health mobile app allows users to track and manage the medications they take. Using sophisticated behavioral techniques, the company’s service encourages patients’ active participation in their healthcare, helps them remain adherent to medications, and provides information about potential drug interactions. This announcement marks the third acquisition for TrialCard in the past year. In October 2018, TrialCard introduced TC Script, a non-commercial dispensing pharmacy located in Scottsdale, AZ. In January 2019, the burgeoning pharmaceutical solutions provider bought Raleigh-based competitor RxSolutions. • read more.

HMS acquires Plano, Texas-based VitreosHealth for $36.5M in cash. VitreosHealth offers predictive and prescriptive health insights for population risk models. Its AI-driven platform leverages data from a broad set of sources, including electronic health records, claims, health risk assessments and socioeconomic data. VitreosHealth then provides insights that allow clinicians and health plan administrators alike to identify and address care gaps within their member or patient populations. Also, its advanced analytic predictions into the care management workflow offer critical insights that help health plans and managed care organizations optimize their Star and other quality ratings, recognize undercoding/overcoding patterns and analyze out-of-network utilization. • read more.

Google completed takeover of DeepMind Health. The search giant has completed a controversial take-over of the health division of its UK AI acquisition, DeepMind. The personnel move had been delayed as National Health Service (NHS) trusts considered whether to shift their existing DeepMind contracts ‐ some for a clinical task management app, others involving predictive health AI research ‐ to Google. The Royal Free NHS Trust, Taunton & Somerset NHS Foundation Trust, Imperial College Healthcare NHS Trust, Moorfields Eye Hospital NHS Foundation Trust and University College London Hospitals NHS Foundation Trust all put out statements confirming they have moved their contractual arrangements to the Mountain View-based company. • read more.

House-call service Heal acquires Doctors on Call for $15M. Heal’s acquisition of Doctors on Call ‐ which averaged 42,000 house calls to seniors in NYC in 2018 ‐ is aimed at transforming an old-school, people intensive practice into an omni-modal care solution that lowers healthcare operating costs (opex) and provides always on, connected care. Doctors on Call will benefit from Heal’s back-office systems for booking, billing and other functions, as well as from Heal Hub, a connected health device that provides Heal with real-time data on blood pressure, heart rate and other health metrics for its patients. • read more.

EMPATHIQ acquires Rivews to build the most advanced patient experience and survey platform. Founded in August of 2016, Rivews is a patient experience and reputation platform that enables healthcare organizations in instantly connecting with patients via text-message post-care. With nearly 1 in 3 patients engaging with Rivews’ feedback management system, the company has engaged with over 1.8 million patients, with an average response rate of 28%. To date, Rivews has identified over 32,500 patient complaints with 17,500 of them including thorough and lengthy insight of additional comments sent by patients… The acquisition will enable EMPATHIQ to further advance from its current online reporting and monitoring platform to enabling healthcare organizations in collection of real-time patient feedback and surveys after-care. The acquisition will also strengthen and give EMPATHIQ major advantage and leverage as it molds into a full-fledged patient experience software company. • read more.

GoodRx acquires HeyDoctor, launches online medical visits. Initially operating as an online marketplace for discounts on prescription drugs, GoodRx has acquired the startup HeyDoctor and used its technology to launch GoodRx Care, powered by HeyDoctor. The new service lets patients see a board-certified medical professional for advice, diagnosis, and treatment of routine health conditions in the ease and comfort of their own homes. Most visits are just $20 (visits that include lab tests cost a bit more). Along with online primary care visits, GoodRx Care provides patients access to prescription and lab testing services — all while ensuring streamlined and coordinated care by allowing patients to share their medical records with their existing providers. • read more.

PE firm Warburg Pincus acquires SaaS EHR provider Qualifacts. The investment will allow Qualifacts to accelerate product development and expand sales and marketing efforts. The partnership will also help the company identify strategic relationships and acquisition opportunities. Qualifacts is a leader in cloud-based healthcare technology, providing integrated clinical, financial and administrative software solutions to the behavioral health and human service market. • read more.

WebMD to acquire Aptus Health. The acquisition includes Aptus Health’s core brand Univadis, a global information and education platform delivering medical news, conference and research updates and thought-leader education to 4 million HCPs in 91 countries. In addition, the transaction includes Aptus Health’s EngagedMedia, which supports patient engagement and adherence via an integrated mobile messaging platform and Tomorrow Networks, which offers data-driven, location-based mobile advertising and marketing solutions driven by consumer behavior. The acquisition is expected to be complete in October and is subject to customary closing conditions. Terms of the deal are not being disclosed. • read more.

Please note that this list represents only the digital health M&A deals that caught our eye in the past month. There may be other deals we are not aware of or those which we don’t think fit the “digital health” category.

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