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June 10, 2021

Datavant and Ciox Health enter $7bn merger deal

The new company will focus on enhancing patient outcomes by eradicating barriers to secure health data exchange.

Datavant and Ciox Health have entered into a definitive agreement to merge the two companies in a deal valued at $7bn.

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To be named Datavant, the merged company will become the largest health data ecosystem in the US with revenue of over $700m.

It will aid patients, providers, payers, health data analytics firms, patient-facing applications, government organisations and life science firms to exchange their patient-level data in a secured manner.

Furthermore, the new company will focus on enhancing patient outcomes and cutting costs by eradicating barriers to secure health data exchange.

Datavant will provide the ability to access, exchange and connect data among various organisations in its ecosystem for use cases such as improved clinical care, health analytics and medical studies.

The merged ecosystem of the entity will have over 2,000 hospitals and 15,000 clinics in the US.

Above 120 health plans, more than 100 health data analytics firms and 30 life science firms, over 70 academic institutes and non-profit organisations and more than 75 state, local and federal government organisations will also be part of the new ecosystem.

Datavant CEO Travis May said: “Every decision made in healthcare should be informed by data.

“Our goal is to create a ubiquitous, trusted, and neutral data ecosystem where parties across the healthcare system can seamlessly and securely exchange data – unlocking better outcomes, faster research, and healthcare at a lower cost.”

A group of private equity investors, venture capital and strategic investors are supporting the merger deal funding, led by New Mountain Capital, Roivant Sciences and Transformation Capital among others.

The transaction is also funded by a new investor Sixth Street and Goldman Sachs Asset Management’s West Street Strategic Solutions fund.

On concluding the deal, present Ciox CEO Pete McCabe will take charge as the CEO of the merged company. Travis May will take up the role of president and join the board of directors along with Sixth Street.

Subject to necessary regulatory approvals, the merger deal is anticipated to close in the third quarter of this year.

Related Companies

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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