Weave Communications to Be Acquired by Francisco Partners for $650M

Under the agreement, shareholders of publicly traded Weave will receive $7.40 per share in cash, representing a premium of approximately 34% over the company's closing share price on August 17, before the transaction was announced.

Francisco Partners has agreed to acquire Weave Communications, an AI-powered patient engagement and payments platform, at an aggregate equity valuation of approximately $650 million, as digital health mergers and acquisitions activity continues to accelerate.

Under the agreement, shareholders of publicly traded Weave will receive $7.40 per share in cash, representing a premium of approximately 34% over the company's closing share price on August 17, before the transaction was announced.

Following the completion of the deal, Weave will be taken private and its shares will no longer trade on the New York Stock Exchange.

Founded in 2008, Weave provides healthcare practices with tools for managing patient communications, scheduling, appointment reminders, digital forms, payments, insurance verification, reviews and marketing.

The company's platform also includes an AI receptionist that can communicate with patients, answer questions, schedule appointments and collect payments.

"Weave is ideally positioned to capitalize on the healthcare industry's large and growing demand for AI to help optimize their practices and services," said Ezra Perlman, co-president at Francisco Partners.

Perlman said Weave's vertical platform is used by tens of thousands of practices to manage patient communications and revenue collection.

The acquisition comes amid a series of digital health transactions announced or completed in August.

Digital musculoskeletal care company Hinge Health announced plans to acquire gastrointestinal care company Cylinder Health for $105 million in cash. Universal Health Services also completed its $835 million acquisition of virtual behavioral healthcare company Talkspace.

Meanwhile, Delaware-based telehealth and medical transportation company DocGo agreed to acquire Hicuity Health, a provider of virtual clinical services to hospitals and other healthcare facilities. DocGo will assume approximately $52 million of Hicuity's existing debt owed to Perceptive Advisors, which has also committed up to $50 million in additional senior secured term loans.

Earlier in August, revenue cycle management technology company R1 agreed to acquire Humata Health, an AI company focused on automating prior authorizations.

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