Healthcare navigation company Castlight Health and primary-care provider Vera Whole Health are merging with the aim of improving the ways care is accessed, delivered and purchased, the companies announced Wednesday.
The combination and transaction—which has an equity value of around $370 million—are expected to be finalized early this year, according to a news release.
"Integrating our navigation data and technology with Vera Whole Health's high-quality primary care offering addresses the fundamental need for a coordinated and personalized patient experience," Castlight Health CEO Maeve O'Meara said in a news release.
Vera Whole Health's majority shareholder, private equity firm Clayton, Dubilier & Rice, will invest $338 million toward the merger. Anthem Health Solutions, Morgan Health and Central Ohio Primary Care will be key strategic partners.
Vera Whole Health plans to acquire all outstanding shares of publicly traded Castlight Health, which will become a private company.
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Allowing physicians and commercially insured patients access to digital navigation and engagement resources along with quality and cost data will help Vera Whole Health improve patients' social, mental and physical health, Vera Whole Health CEO Ryan Schmid said in a news release.
Clayton, Dubilier & Rice invested in Vera Whole Health last year following its funding of value-based care systems such as agilon health, Millennium Physician Group and naviHealth.
"We believe the combined company has a unique opportunity to deliver large-scale innovation to the commercial customer segment and accelerate the restructuring of the healthcare market to a stronger focus on value," Ron Williams, Vera Whole Health chairman and operating adviser to Clayton, Dubilier & Rice, said in a news release.
