Telehealth demand is still going strong. Accolade, Inc. (NASDAQ: ACCD), a Seattle-based digital health company, has announced the acquisition of PlushCare, a leading virtual primary care and mental health platform that offers virtual doctor visits to patients in all 50 U.S. states. The deal was valued at $390 million, consisting of $40 million in cash and $340 million in Accolade common stock. Additionally, Accolade will pay up to an additional $70 million payable upon the achievement of defined revenue milestones. In 2020, PlushCare generated $35 million in unaudited revenues.
In the news release, Accolade stated that it expects the acquisition will be accretive to its growth rate and will enable new revenue opportunities as the healthcare ecosystem moves toward value-driven, patient-centric models.
Accolade provides personalized health and benefits solutions through cloud-based technologies, specialized support and integrated data and programs across mobile, online and phone channels. The company went public in July 2020, riding off the wave of telehealth demand and raising $220 million in its IPO at a valuation of $1.2 billion in its debut on the NASDAQ. In 2020, the company generated $133 million in revenue, a 40% increase year over year. Nearly 60% of that revenue came from partnerships with its large, corporate clients, such as American Airlines and State Farm.
The company first announced a deal back in January, according to search results in our Healthcare Deals Database, buying Innovation Specialists, LLC (dba 2nd.MD) for $360 million. 2nd.MD provides medical opinions and medical decision support through its Expert Medical Opinion product. 2nd.MD connects employees with board-certified national experts for a medical consultation via video or phone within three to five days.
Combined with PlushCare’s telehealth platform, Accolade is on the way to being a one-stop shop for healthcare services. Competition in the telehealth space in huge, but it seems like Accolade is off to a good start.