Accolade stock soars on $621M Transcarent acquisition deal

Investing.com -- Shares of Accolade (NASDAQ:ACCD) surged 100% following the announcement that Transcarent will acquire the health advocacy and primary care company for $7.03 per share in cash. This offer represents a significant premium of approximately 110% over Accolade's closing stock price on January 7, 2025, the last trading day before the public disclosure of the transaction.

The definitive agreement, which values Accolade at approximately $621 million, has been unanimously approved by the Boards of Directors of both companies. The acquisition is expected to close during the second quarter of 2025, subject to Accolade stockholder approval, regulatory approvals, and other customary closing conditions. Once the transaction is completed, Accolade will become a privately held company, and its common stock will be delisted from Nasdaq.

The strategic merger aims to enhance Transcarent's mission of simplifying access to high-quality, affordable health and care by integrating Accolade's personalized healthcare platform and its expertise in health advocacy, expert medical opinions, and primary care. The combined entity is anticipated to deliver a more personalized and engaging member experience, ultimately leading to higher utilization and reduced healthcare costs.

Transcarent's AI-powered WayFinding and comprehensive care experiences, including Cancer Care, Surgery Care, and Weight Health, will merge with Accolade's robust healthcare platform. This unified platform is expected to provide easier access to quality care, reduce unnecessary treatments and procedures, and alleviate administrative burdens for healthcare providers.

The transaction will be financed through a fully-committed equity financing led by General Catalyst and Glen Tullman’s 62 Ventures. The Board of Accolade has recommended that stockholders approve the merger agreement.

In light of the acquisition announcement, Accolade has withdrawn its previous financial guidance for the fiscal year and will not host its previously scheduled conference call. The company still plans to file its Form 10-Q for the third quarter ended November 30, 2024, on Friday, January 10, 2025, and expects to report financial results within the previously provided guidance range.

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Source: Investing.com