US-Based Virgin Pulse Merges with HealthComp in a $3B Deal

Virgin Pulse, a digital health, well-being, and navigation company, completed merger with HealthComp, a third-party health benefits administrator. The amalgamated entity, valued at $3 billion, aims to enhance cost-efficiency and outcomes for employers. 

The merger brings forth a tech-enabled platform leveraging artificial intelligence to craft innovative benefit designs.

Commenting on the same, Chris Michalak, CEO of the unified Virgin Pulse and HealthComp, said, "We are stronger together as one purpose-driven organization with the technology, talent, and opportunity to radically change how people engage with and navigate the healthcare ecosystem."

The majority ownership of the new company lies with New Mountain Capital, with Marlin Equity Partners retaining minority ownership. Notable shareholders include Blackstone and Morgan Health.

In a separate deal, private equity firm Thoma Bravo concluded its $1.8 billion acquisition of NextGen Healthcare, a cloud-based technology provider for medical practices. The deal provides NextGen with increased capital, expertise, and strategic flexibility to bolster its position in providing healthcare technology solutions.

Shedding light on the same, president and CEO of NextGen Healthcare, David Sides, said, "We are delighted to partner with Thoma Bravo to accelerate the delivery of transformational solutions to the ambulatory healthcare marketplace."

Thoma Bravo, known for its extensive experience in the software and technology sectors, aims to drive accelerated growth and product innovation in collaboration with NextGen Healthcare.

These transactions come when healthcare M&A deals hit a three-year low, as reported by KPMG. The mergers signify a strategic move to strengthen positions and drive advancements in healthcare technology solutions, echoing a broader trend in the industry.

In other notable developments, the joint venture between Henry Ford Health and Ascension Michigan, boasting an annual operating revenue exceeding $10.5 billion, is set to be finalised in the summer of 2024, pending federal and state regulatory approvals. 

The venture includes Henry Ford's acute care hospitals, related facilities, assets, and Health Alliance Plan.