Transcarent to acquire Accolade for $621 million

Photo: Matt Mawson/Getty Images

Transcarent, an employee healthcare navigation company, has entered into a definitive agreement to acquire health benefits platform Accolade for about $621 million, or $7.03 per share in cash.

The Boards of Directors of both companies unanimously approved the combination, which they said will make it easier for people to access affordable healthcare, and promised a "more personalized and engaging member experience."

The transaction is expected to bring Transcarent's generative AI-powered WayFinding and comprehensive care experiences – Cancer Care, Surgery Care and Weight Health – along with its Pharmacy Benefit, offering together with Accolade's Personalized Healthcare Platform and expertise in advocacy, expert medical opinions (EMO) and primary care.

The merger consideration of $7.03 per share represents a premium of approximately 110% over Accolade's closing stock price on January 7, 2025, the last trading day prior to public disclosure of the transaction. Transcarent will finance the transaction through a fully committed equity financing, led by General Catalyst and Glen Tullman's 62 Ventures.

The transaction is expected to close during the second quarter of this year, at which point the two companies said they will work together to ensure a smooth integration process.

Upon the completion of the acquisition, Accolade will become a privately held company and its common stock will no longer be listed on Nasdaq.

WHAT'S THE IMPACT?

Transcarent and Accolade said the new unified platform will provide a more personalized experience, driving higher utilization and lower costs. Using WayFinding, people will have one place to go for benefits navigation, clinical guidance and care delivery.

Increasing people's access to quality care, and reducing unnecessary treatments and procedures, will be facilitated by Accolate's advocacy, expert medical opinions and primary care, the companies said.

At the same time, Transcarent's focus on AI is expected to result in a more intuitive experience for members and reduce administrative burden for doctors, nurses and other clinicians. The expanded platform will allow for more health data continuity and integration, the companies said.

Transcarent praised Accolade for building deep data integrations with a broad ecosystem of partners, including diabetes, mental health, fertility healthcare, musculoskeletal (MSK) conditions and kidney disease, among others.

THE LARGER TREND

The companies said members will have a more personalized experience, which will result in high utilization and measurably reduced costs.

"Our clients – employers and health plans and the people who work for them or who they serve – are telling us that healthcare today is too confusing, too complex, and too costly," said Transcarent CEO Glen Tullman. "By integrating our recently introduced generative AI-powered WayFinding and comprehensive care experiences with Accolade's advocacy, expert medical opinions, and primary care, we have a solution that finally makes it easy to access high-quality health and care and deliver lower costs for the people who pay for care – employers, and all of us."

"Joining forces with Transcarent allows us to expand our mission of empowering people to make the best decisions for their health and wellbeing," said Accolade CEO Rajeev Singh. "The two companies share a focus on embracing AI and advanced technology to change the way consumers experience the healthcare system."

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.