Healthcare technology firm Transcarent is set to acquire part of AI-powered telemedicine company 98point6 in a $100 million deal, according to a recent announcement by the companies.
Under the terms of the agreement, Transcarent will acquire 98point6’s virtual primary care business, which provides remote consultations with doctors through its AI-powered app. This move will enable Transcarent to expand its range of healthcare services and offer its members access to 98point6’s cutting-edge technology.
Transcarent, which was founded in 2020 by former Livongo CEO Glen Tullman, offers a range of healthcare services, including telemedicine consultations, second opinions, and medical concierge services. The company has raised over $200 million in funding to date and has partnerships with several major employers, including Walmart.
The acquisition of 98point6’s virtual primary care business is expected to help Transcarent further expand its reach and strengthen its position in the healthcare market. The deal is expected to close in the second quarter of 2023, pending regulatory approval.
Transcarent’s acquisition of 98point6’s virtual primary care business comes amid a surge in demand for telemedicine services, driven by the COVID-19 pandemic. With more people seeking remote healthcare services, companies like Transcarent and 98point6 are well-positioned to capitalize on this growing trend.
According to a report by Grand View Research, the global telemedicine market is expected to reach $298.9 billion by 2028, driven by factors such as rising healthcare costs, the increasing prevalence of chronic diseases, and advancements in technology.
The acquisition of 98point6’s virtual primary care business is also a sign of the growing interest in AI-powered healthcare services. AI-powered healthcare services offer several advantages over traditional healthcare services, including greater efficiency, cost savings, and improved patient outcomes.
The deal is expected to benefit both companies, with 98point6 able to focus on its other offerings, including its virtual behavioral health platform, while Transcarent can expand its healthcare services to include virtual primary care. The acquisition is also expected to create new opportunities for collaboration and innovation between the two companies.
Overall, the acquisition of 98point6’s virtual primary care business by Transcarent is a significant development in the healthcare industry, demonstrating the increasing importance of telemedicine and AI-powered healthcare services. With the global telemedicine market expected to continue to grow in the coming years, it will be interesting to see how companies like Transcarent and 98point6 continue to evolve and innovate to meet the changing needs of patients and healthcare providers.