Seattle-based Vera Whole Health will combine with publicly-traded Castlight Health, acquiring all outstanding shares of the San Francisco-based healthcare data and navigation company for approximately $370 million.
Vera partners with employers to deliver healthcare through a per-month, per-person membership fee to its clients, including Seattle Children’s Hospital. Castlight provides a digital platform for healthcare navigation, along with a team of clinical and benefits experts.
Shares of Castlight were up more than 20% on Wednesday.
The combined company will “accelerate the restructuring of the healthcare market to a stronger focus on value,” said Vera chair Ron Williams, in a statement announcing the deal Wednesday.
Williams is also operating advisor to Clayton, Dubilier & Rice funds, which acquired a majority stake in Vera this summer and will invest up to $338 million to back the transaction. The healthcare and insurance giant Anthem, a Castlight customer, will also invest in the combined company.
“Equipping our advanced primary care teams and our patients with Castlight’s industry leading digital navigation and engagement capabilities enhances our ability to reduce total cost of care while improving the social, mental and physical health of our patients,” said Vera CEO Ryan Schmid, who founded the company in 2008.
The deal is expected to complete in the first quarter of 2022. Following the completion of the deal, Castlight will become a privately held company. Williams, the former CEO of Aetna, will lead the combined company as its chair.
from GeekWire https://www.geekwire.com/2022/vera-whole-health-to-acquire-publicly-traded-castlight-in-370m-deal/
