Tendo, a patient engagement software company, said on Wednesday it plans to acquire MDsave, a nationwide provider marketplace company, for $150 million.
Tendo CEO Dan Goldsmith said the $150 million deal will be entirely financed by Tendo's balance sheet and is expected to close in October.
Goldsmith said the deal will allow his company to expand product offerings for its health system customers and incorporate its platform into MDsave’s provider marketplace. With this integration, he said patients will be able view physician-level metrics such as volume of procedures, outcomes and complications when they are selecting care.
Tendo, founded in 2019, is used by health systems as a patient engagement solution. MDsave allows users to compare upfront prices of procedures in an online, searchable marketplace of local providers. The two companies began exploratory talks for a deal over a year ago, Goldsmith said.
“This is not a bargain shopping in any way, shape or form,” Goldsmith said. “You can't build a marketplace overnight. There are many companies that are trying to build both sides of this marketplace at the same time, and it just doesn't work.”