Honor Technology has acquired Home Instead, the company said.
The acquisition will allow the companies to pair home care provider Home Instead's network with San Francisco-based Honor Technology's home care technology and operations platform. Combined, the two organizations generate more than $2.1 billion in annual home care services revenue. The companies did not disclose the terms of the deal, which took effect Friday.
The Home Instead acquisition will serve "as a foundation for a dramatic increase in innovation to benefit caregivers and clients through expanded offerings," Honor Technology said in a news release.
Honor Technology plans to increase research and development investments through engineering and technology and, with Home Instead, will ramp up its advocacy and social purpose initiatives.
"These two organizations share one passion: transforming the care experience for older adults around the world," Jeff Huber, CEO of Omaha, Neb.,-based Home Instead, said in a news release. "For years, our commitment has been to create the world we want to grow older in. This transaction adds fuel to that commitment. Combining the strengths of these companies moves our passion from aspirational vision to inevitable impact."
The Honor Technology deal with Home Instead will transform the senior care space, "flipping it from analog to digital," said Marc Andreessen, general partner at venture capital firm Andreessen Horowitz. Andreessen serves on Honor Technology's board of directors and Andreessen Horowitz is an Honor Technology investor.
"Technology will drive operational efficiency and personalization at scale, which is the only way to meet the skyrocketing needs of the baby-boom generation. If we increase our capacity to care, the next generation—and those after—will reap the benefits as well," Andreessen said.
Home Instead will retain its name and operate as an Honor Technology subsidiary. Huber remain Home Instead CEO but will report to Honor Technology CEO Seth Sternberg.
"The pandemic turned a simmering back-burner issue into an urgent, global human crisis for older adults. It's a simple truth: The way the world cares for older adults must evolve," Huber said. "The hospital of the future is the living room. And that future will be fueled by a vibrant, respected workforce delivering care with skill and compassion."
To address the current workforce shortage in the industry, the two companies plan to improve training opportunities for employees. Honor Technology and Home Instead employ more than 100,000 caregivers.