Olive AI, a company that was once a ‘unicorn’ and valued at $4 billion, has sold its remaining assets and is winding down operations.
The company, which developed technology to help providers and insurers automate the revenue cycle, sold its patient access software product to Waystar and its prior authorization business to Humata Health, Olive said Tuesday in a post on its website.
Terms of the deals were not disclosed.
Representatives for Olive, Waystar and Humata Health did not immediately respond to requests for comment.
Waystar’s parent company, Waystar Holding Corp., filed a registration statement Oct. 16 with the Securities and Exchange Commission related to a proposed initial public offering. Waystar has said it will go public as soon as possible.
The deals represent the final chapter in what’s been a significant fall from grace for Olive. In December 2020, it received $225 million in a funding round led by venture firm Tiger Global that valued Olive AI at $1.5 billion. Seven months later in July 2021, it received $400 million in a round led by investment firm Vista Equity Partners that brought its valuation to $4 billion.
Olive AI laid off 450 employees in July 2022 as CEO Sean Lane cited strategic missteps and a challenging economy. It cut another 215 jobs in February.
In October 2022, the company sold its population health and 340B product lines to Rotera, a healthcare artificial intelligence company, so it could focus on revenue cycle management and utilization management technologies. It sold its utilization management solution to Availity in April.
Olive is the latest example of a digital health ‘unicorn,’ when investors value companies at more than $1 billion, going bust. Digital therapeutics company Pear Therapeutics filed for bankruptcy in April and artificial intelligence company Babylon went bankrupt after a proposed deal to go private fell through.