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DOJ Reviewing Potential Antitrust Challenge to Pharmacy Software Deal

By  |  December 10, 2025

The U.S. Department of Justice is considering whether to contest a quiet merger in the pharmacy software sector, according to Reuters, as federal officials intensify their scrutiny of consolidation across the health-care industry.

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    People familiar with the matter told Reuters the deal in question involves RedSail Technologies’ proposed purchase of Micro Merchants Systems, which operates the PrimeRx management platform used by independent pharmacies. RedSail, headquartered in Spartanburg, South Carolina, has been building a presence in pharmacy software through several acquisitions backed by investment firms including Francisco Partners. Micro Merchants Systems, based in Uniondale, New York, is supported by TA Associates Management.

    Sources told Reuters that representatives from the two companies met with DOJ antitrust chief Gail Slater in late November. Such high-level meetings often signal serious concerns within the department, though they do not necessarily guarantee a lawsuit if companies propose fixes that address competitive issues raised during review.

    If the agency moves forward, it would mark Slater’s first merger challenge since assuming the role in March. People familiar with the discussions cautioned that the DOJ has not reached a final decision and could still opt against litigation.

    Read more: A Discovery Plan for Pharmacy Benefit Managers’ Collusion

    Officials at the DOJ declined to comment, and requests for comment from RedSail, Micro Merchants Systems and the private equity firms involved were not returned, Reuters reported.

    RedSail’s business centers on tools that help community pharmacies manage operations and patient services. Its acquisitions in recent years have included PioneerRx in 2020 and BestRx earlier this year, along with companies involved in pharmacy delivery and payments. The company has previously touted its reach among more than 12,000 pharmacies nationwide. PrimeRx markets similar technology to smaller, independent pharmacies that rely on software to handle prescriptions and retail services.

    A possible lawsuit would also underscore continued attention on private equity dealmaking under federal antitrust policy, per Reuters. The Biden Administration has prioritized oversight of investment-driven roll-ups in sectors such as health care. Both the DOJ and the Federal Trade Commission have pressed for more aggressive enforcement and have taken several private equity firms to court over alleged anticompetitive behavior.

    The DOJ’s broader focus on the health industry includes an ongoing investigation into UnitedHealth Group that began under the Biden Administration and has continued under Slater’s leadership, according to Reuters.

    While the Justice Department has settled several merger cases since Slater took office, it has yet to file a challenge during her tenure.

    Source: Reuters