Health navigation company Castlight Health and primary health care provider Vera Whole Health are merging with the aim of improving the way healthcare is accessed, delivered and purchased, the companies announced on Wednesday.
The combination and the transaction – which has an equity value of about $ 370 million – is expected to be completed early this year, according to a press release.
“Integrating our navigation data and technology with Vera Whole Health’s primary, high-quality healthcare offerings addresses the basic need for a coordinated and personalized patient experience,” Castlight Health CEO Maeve O’Meara said in a press release.
Vera Whole Health’s majority shareholder, private equity firm Clayton, Dubilier & Rice, will invest $ 338 million in the merger. Anthem Health Solutions, Morgan Health and Central Ohio Primary Care will be important strategic partners.
Vera Whole Health plans to acquire all outstanding shares in the listed Castlight Health, which will become a private company.
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Giving physicians and commercially insured patients access to digital navigation and engagement resources along with quality and cost data will help Vera Whole Health improve patients’ social, mental and physical health, Vera Whole Health CEO Ryan Schmid said in a press release.
Clayton, Dubilier & Rice invested in Vera Whole Health last year following its funding of value-based care systems such as agilon health, Millennium Physician Group and naviHealth.
“We believe the combined company has a unique opportunity to deliver large-scale innovation to the commercial customer segment and accelerate the restructuring of the healthcare market to a stronger focus on value,” said Ron Williams, president of Vera Whole Health and operations consultant for Clayton. Dubilier & Rice, said in a press release.