Vera Whole Health Closes $370M Deal for Health Data Firm Castlight

Primary care provider Vera Whole Health is acquiring health data firm Castlight in a deal with an equity value of $370 million that will be structured as an all-cash tender offer to acquire all outstanding shares of Castlight, according to a press release.

The combined entity will bring a value-based care model to the employer healthcare market and will integrate Castlight’s technology with Vera’s clinical network, healthcare professionals and provider partnerships. The combined company will also work to change how patients access care, how providers deliver care, and how employers and other purchasers pay for care.

See also: JPMorgan Invests $50M In Medical Subscription Startup Vera Whole Health

“We believe the combined company has a unique opportunity to deliver large scale innovation to the commercial customer segment and accelerate the restructuring of the healthcare market to a stronger focus on value,” said Ron Williams, chairman of Vera and operating advisor to Clayton, Dubilier & Rice (CD&R) funds.

CD&R, Vera’s majority equity holder, is investing $338 million in the combined company, and health insurer Anthem, a long-time Castlight customer, has agreed to make an undisclosed investment.

“Integrating our navigation data and technology with Vera’s high-quality primary care offering addresses the fundamental need for a coordinated and personalized patient experience while enabling providers to improve outcomes and lower costs, and employers to participate in full risk-sharing for the first time,” said Maeve O’Meara, Castlight CEO.

Read more: Telehealth, Digital Payments Make Healthcare Easier, Affordable for Patients and Providers

“Equipping our advanced primary care teams and our patients with Castlight’s industry-leading digital navigation and engagement capabilities enhances our ability to reduce total cost of care while improving the social, mental and physical health of our patients,” said Ryan Schmid, founder and CEO of Vera.

“Personalizing care plans and engagement campaigns while providing our care teams and patients with quality and cost data will greatly enhance the patient journey and our ability to manage commercial populations,” Schmid added.

You may also enjoy: US Consumers Forgo Medical Treatments Over Lack of Healthcare Payments Options

“We believe this is a milestone for the healthcare system because of the way it merges benefits and care navigation, including digital touchpoints, into a patient’s primary care relationship,” said Ravi Sachdev, CD&R Partner, and member of Vera’s board of directors. “We believe a combination of these two innovative companies will transform care in local markets across the country.”