Transcarent, a leading digital health platform, has announced its acquisition of Accolade (Nasdaq: ACCD), a personalized health and benefits company known for its virtual-first integrated care, including behavioral health services. The deal, valued at approximately $621 million, will see Transcarent acquire Accolade for $7.03 per share in cash.
The merger of the two companies, both heavily reliant on artificial intelligence (AI), will combine their platforms into a single, unified product. According to Transcarent, the new integrated platform will bring together “the best of provider, partner, and payer ecosystems,” creating a comprehensive solution aimed at improving the healthcare experience for both employers and employees.
Glen Tullman, CEO of Transcarent, expressed the need for innovation in healthcare delivery, stating, “Our clients – employers, 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.” He went on to highlight the integration of Transcarent’s AI-powered WayFinding and comprehensive care services with Accolade’s advocacy, expert medical opinions, and primary care, calling the collaboration 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.”
Transcarent, based in San Francisco, is a rapidly growing digital health platform with a valuation of about $2.2 billion. The company leverages AI to connect users to health benefits and insurance information through its app. Transcarent raised approximately $450 million in funding from prominent investors such as General Catalyst, 7wire Ventures, Geodesic Capital, and Threshold. The startup has seen substantial growth, adding more than 500,000 new members to its platform in early January 2025 alone.
The acquisition of Accolade will significantly bolster Transcarent’s capabilities, adding over 1,000 clinicians to its team. Accolade, headquartered in Seattle, offers a blend of virtual primary care and mental health services, focusing on behavioral health conditions such as depression, anxiety, substance use disorders (SUDs), and psychiatric illnesses. The company has established partnerships with several leading behavioral health providers, including Brightside, Equip, FOLX Health, Headspace, and Lyra.
Rajeev Singh, CEO of Accolade, emphasized the shared vision of the two companies, saying, “The two companies share a focus on embracing AI and advanced technology to change the way consumers experience the healthcare system.” He further explained that the merger would create “a more personalized healthcare experience for people while improving outcomes and driving down costs,” leveraging both companies’ healthcare data and technological expertise.
The deal is expected to close in the second quarter of 2025, pending regulatory approval and other closing conditions. Upon completion, Accolade will transition to a privately held company and be delisted from Nasdaq.
This acquisition positions Transcarent and Accolade at the forefront of digital health innovation, with a shared focus on making healthcare more accessible, personalized, and cost-effective for both consumers and employers.
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