Together, the two companies intend to provide more seamless consumer access to care for acute, chronic, and preventive health needs with highly rated physicians whether delivered through a virtual setting with PlushCare, or through Accolade’s advocacy and navigation solutions that support in-person consultation.
The transaction is expected to close in early June, subject to customary closing conditions. Under the terms of the agreement, the purchase price of up to $450 million will consist of $40 million in cash, $340 million in Accolade common stock, and up to an additional $70 million of value payable upon the achievement of defined revenue milestones following the closing.
The addition of a primary care team will extend Accolade’s ability to improve clinical health outcomes for its members and deliver additional cost savings for employers.
Accolade’s primary care physicians will be backed by Accolade’s full portfolio of services, including the engagement platform that forms the backbone of Accolade’s current success in driving better utilization of healthcare services and ROI for its customers.
Further, Accolade’s primary care physicians will have access to a best-in-class data set to better diagnose and treat members, including a 360-degree view of the member’s health, full visibility into the member’s benefits programs, access to AI-driven care recommendations through Accolade’s Intelligent Provider Matching platform, access to the best expert medical opinion network of specialists and the full support and scale of Accolade’s Frontline Care Teams.
For the calendar year ended December 31, 2020, PlushCare reported unaudited revenues of approximately $35 million. Accolade expects PlushCare to be accretive to its revenue growth rate and intends to provide guidance for the combined entity on its first earnings call following the close of the transaction.
“Healthcare is personal, and the connection between physician and patient is the single most important factor in improving outcomes. PlushCare has successfully built a market-changing, direct-to-consumer model with virtual capabilities that extend Accolade’s member engagement deeper into the healthcare experience,†said Rajeev Singh, chief executive officer, Accolade. ■