Health

Health benefits platform Accolade will pay $460M to acquire telemedicine startup 2nd.MD

Seattle-based introduced Thursday that it will pay $460 million to acquire , a Houston, Texas-based firm that helps sufferers get skilled 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 prospects perceive their well being plans and benefits.

“Each firms 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 . “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 obtainable.”

Shares of Accolade have been up greater than 10% in after-hours buying and selling Thursday.

Accolade will combine 2nd.MD into its platform, providing customers a means to get one other opinion when dealing with high-cost and sophisticated medical choices. present that getting a second opinion can lead to fully new diagnoses.

2nd.MD says it may well present recommendation inside three to 5 days, versus the business common of a number of weeks. It will 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 circumstances. It has greater than 300 employers as prospects, as well as to well being plans, and reported about $35 million in income final yr.

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. International VC funding to digital well being firms reached a report $10.3 billion by means of the primary 9 months of 2020, up 43% year-over-year, in accordance to .

Accolade, which went public in July, income of $36.8 million for its fiscal second quarter and a lack of $15.4 million. The corporate serves greater than two million members and 100 prospects.

Earlier in 2020 Singh stated a few of its largest prospects reminiscent of airways have been impacted severely by COVID-19, which might negatively impression the corporate’s member base and income.

However COVID-19 can also be serving to Accolade’s enterprise. The corporate has been in a position to deliver different company prospects aboard with new companies designed to assist staff navigate the fallout from the pandemic. Final yr the corporate rolled out a COVID Response Care program, together with psychological well being assist in partnership with psychological well being service

Shares of Accolade have almost greater than doubled because it raised $220 million at a valuation of $1.2 billion in July.

Accolade, based mostly in each Seattle and Philadelphia, was based in 2007 by Michael Cline and Tom Spann. The corporate , who beforehand co-founded journey expense software program large Concur, which bought to in 2014. Concur co-founder Mike Hilton is the Accolade chief product officer.

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