Redesign Health, ARC Global Merge in $2 Bn Deal, Agree to Acquire AVIA

By combining ARC's clinical expertise, Redesign Health's company-building capabilities and AVIA's digital transformation network, the enterprise aims to help health systems develop and scale technologies across multiple institutions.

Redesign Health, a New York-based global venture and applied technology firm, and ARC Global, Israel’s clinician-led international healthcare-innovation network, have merged in a deal valuing the combined company at approximately $2 Bn, bringing together clinical innovation, technology development, and healthcare venture creation.

The organizations have also agreed to acquire AVIA, a Chicago-based healthcare digital transformation and strategic advisory firm, to strengthen digital health adoption and help health systems scale solutions across their networks.

The merger aims to establish an integrated platform through which hospitals can transform challenges identified by clinicians and healthcare operators into technology products and independent companies.

Redesign Health, which builds and supports healthcare companies, brings its venture-creation infrastructure, investment capabilities, and proprietary AI operating system to the partnership.

ARC Global, founded in 2019 at Israel's Sheba Medical Center, contributes a clinician-led innovation model that identifies healthcare challenges and tests potential solutions within clinical environments.

ARC operates across 12 countries, connecting 31 health systems and more than 300 hospitals. Its approach focuses on developing technologies around the needs of healthcare professionals and validating them through real-world clinical workflows.

The proposed acquisition of AVIA, subject to final regulatory approvals, is expected to strengthen the combined company's ability to support digital health implementation.

The US-based strategic advisory and intelligence firm helps health systems evaluate, select, and implement digital technologies. According to the companies, AVIA's platform is used by more than 90,000 health system leaders and staff to assess over 7,000 digital solutions.

Together, the three organizations work with more than 100 health systems across five continents, while companies and products developed through their networks have reached more than 100 million patients, the companies said.

Brett Shaheen, CEO of Redesign Health, will lead the combined enterprise. Stephen Klasko, former CEO of Jefferson Health, will serve as chairperson of the board, while Professor Eyal Zimlichman, founder and president of ARC Global, will become vice chairperson. The organizations also plan to announce founding health systems in the coming months.

“AI will do more good in healthcare than in any other industry, but realizing that potential requires building from inside healthcare itself,” Brett Shaheen, CEO of Redesign Health, said.

The combined company's model seeks to shift healthcare innovation towards solutions developed within health systems rather than technologies created externally and subsequently sold to providers.

By combining ARC's clinical expertise, Redesign Health's company-building capabilities, and AVIA's digital transformation network, the enterprise aims to help health systems develop and scale technologies across multiple institutions.

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