Transcarent completes $621 million merger with Accolade

Merger creates health care powerhouse: ©Wladimir1804 - stock.adobe.com

Transcarent announced it has completed its merger with Accolade, forming one of the most comprehensive platforms in the health and care industry. The combined organization now serves more than 20 million members and over 1,700 employer and health plan clients, aiming to become the go-to destination for high-quality, affordable, and accessible health care, according to the company.

With the $621 million deal finalized just three months after it was first announced, Transcarent is integrating Accolade’s leadership in health advocacy, expert medical opinion, and virtual primary care with its own AI-powered “WayFinding” navigation and care services, including specialized programs in cancer, surgery, and weight health.

“Transcarent and Accolade coming together is an important step to make it easier for everyone to access the high-quality, affordable health and care they deserve,” said Glen Tullman, CEO of Transcarent. “We’re creating an entirely new way to experience health and care. We are truly better together.”

The newly unified company brings together two technology-forward platforms that emphasize personalized guidance, 24/7 access to care, and deep integration with a wide range of health services. Transcarent’s WayFinding system combines benefits navigation and clinical guidance, while Accolade’s “True Health Actions” use data from medical records, employers, and health plans to create targeted care plans and improve outcomes.

“Our generative AI solutions are empowering doctors, nurses, and specialists to focus more on patient care by automating administrative tasks,” the company said in its announcement.

Snezana Mahon, Pharm.D., president of Transcarent, highlighted the merger’s impact on care delivery options: “Together we will now have the largest Experience Store with solutions covering a broad range of health conditions... This is far beyond legacy navigation.”

The Experience Store, a marketplace for curated point solutions and care providers, will offer employers and health plans an unprecedented degree of flexibility to meet the diverse needs of their populations, according to the company. Areas like mental health, fertility, diabetes, and musculoskeletal care will be integrated into a single, easy-to-navigate platform.

The transaction was financed through a mix of existing capital, new investments from General Catalyst and Glen Tullman’s 62 Ventures, and debt led by J.P. Morgan. As a result of the acquisition, Accolade’s stock is no longer publicly traded, and the combined company is now privately held.

Transcarent says it will continue to focus on innovation and personalized experiences to help reduce unnecessary treatments, improve outcomes, and cut costs—a goal it believes is now within reach with the expanded capabilities of the merged companies.