Transcarent CEO Glen Tullman spent much of 2024 hint that its health benefits newcomer might be looking for acquisitions, and a little more than a week into the new year, it’s succeeding: Transcarent announced Wednesday that it will buy Accolade, a another benefits company, for $621 million, more than double the value of Accolade. on the stock market the day before.
Transparent raised $126 million in 2024, and the cash acquisition is funded by General Catalyst and Tullman’s 62 Companies. Accolade shareholders will receive $7.03 per share, a 110% premium to Tuesday’s closing price of $3.35. The deal is expected to be finalized in the second quarter of the year.
Tullman told STAT he believes the stock market has unfairly punished companies like Accolade and that looking at the premium paid is not the right metric to gauge the strength of the deal. Still, he said, “I think it demonstrates how valuable we think this company is.” »
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