McKesson Technology Solutions to rebrand as Change Healthcare after merger closes
New company will offer broad range of software and analytics services for healthcare companies.
McKesson Technology Solutions will be rebranded as Change Healthcare after its merger with Change Healthcare Holdings closes, the company announced Thursday, ending speculation about the future branding of the health IT firm.
The deal, which also recently passed federal antitrust review, is set to close in the first half of this year.
The new Change Healthcare entity will encompass all of Change Healthcare Holdings business and the majority of McKesson Technology Solutions. The new company's logo will also be revamped to reflect the combining of the two companies, McKesson said.
[Also: McKesson identifies five health system pharmacy trends to watch in 2017]
"From day one, our intent has been to create a new company uniquely equipped to drive collaborative and positive change across the healthcare industry," said John Hammergren, McKesson Corp chairman and chief executive officer and chairman of the new company's board. "After a thorough evaluation of potential names as well as customer and legal input, we came to the conclusion that 'Change Healthcare' best articulates the new company's mission. It speaks directly to our clients who share our vision for a better healthcare system, and it reinforces the ambitions and spirit of our new company, our great potential and our transformative role in healthcare."
Change Healthcare will offer software and analytics, network solutions and technology-based services that the company said will help healthcare customers exchange crucial information, control costs, increase cash flow and aid in the transition to value-based healthcare.
[Also: McKesson buys HealthQX for value-based payment tools]
When the deal was first unveiled in June, the companies said the new entity could generate more than $150 million in savings by its second year of operations, and overall, the companies said the combined firm would pull in $3.4 billion in annual revenue. At that time, the deal excluded McKesson's RelayHealth Pharmacy business, but did include McKesson's RelayHealth Financial business.
McKesson Corp. and Change Healthcare will own approximately 70 percent and 30 percent of the new company, respectively, and will receive cash proceeds of approximately $1.25 billion and $1.75 billion, respectively, following the closing.
Twitter: @BethJSanborn
