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Accolade CEO Raj Singh. (Accolade Photo)
Seattle-based Accolade is set to go private again in a deal to be acquired by Transcarent that brings together two health benefits companies.
Transcarent will acquire Accolade for $7.03 per share in cash, representing a total equity value of $621 million, and a premium of about 110% over Accolade’s closing stock price Tuesday.
Both companies aim to help self-insured companies and their employees navigate healthcare options.
The deal, announced Wednesday, is funded by an equity financing from General Catalyst and 62 Ventures, a Chicago-based venture firm led by Transcarent CEO Glen Tullman, who previously led healthcare company Livongo through an IPO in 2019 and a $18.5 billion acquisition in 2020.
Shares of Accolade more than doubled in trading Wednesday.
Founded in 2007, Accolade provides healthcare delivery, navigation, and advocacy services through employers. The company, led by longtime Seattle-area tech exec Raj Singh, went public in 2020.
“The two companies share a focus on embracing AI and advanced technology to change the way consumers experience the healthcare system,” Singh said in a statement. “Combining Transcarent’s complex care experience with Accolade’s people and 16 years of healthcare data, we will create a more personalized healthcare experience for people while improving outcomes and driving down costs.”
Founded in 2020, Transcarent raised a $126 million in a Series D round in May at a $2.2 billion valuation. The company acquired part of Seattle-based healthcare tech company 98point6 in 2023.
Accolade reported $106.4 million in revenue for its fiscal quarter ended Aug. 31, up 10% year-over-year, and a net loss of $23.9 million, down from $32.8 million in the year-ago period.
The company’s stock hit record highs in 2021 but fell sharply in 2022 and is down more than 40% in the past 12 months.
Accolade has additional offices in San Francisco, El Paso, Houston, Plymouth, Pa., Vancouver, B.C., and Prague, according to its website.
Singh led corporate travel expense giant Concur for more than two decades before SAP acquired the company for $8.3 billion in 2014. He joined Accolade in 2015.
