Veradigm announces the acquisition of ScienceIO, a healthcare data and technology provider, in a $140 million deal. Approved by Veradigm’s Board of Directors, the acquisition aims to leverage ScienceIO’s AI platform to enhance Veradigm’s data capabilities, expedite product development, and solidify its position in the healthcare data intelligence market. The transaction is anticipated to close promptly, pending customary conditions.
Veradigm, a prominent provider of healthcare data and technology solutions, has announced its definitive agreement to acquire ScienceIO, a leading provider of healthcare data and technology products. The acquisition has received unanimous approval from the Veradigm Board of Directors and is anticipated to close promptly upon the satisfaction of customary closing conditions.
Established in 2019, ScienceIO stands out as a premier AI platform and foundation model provider for healthcare. Its models drive various healthcare applications while prioritizing patient privacy, including patient anonymization, record linkage, information extraction, summarization, and predictive analytics.
Through this acquisition, Veradigm aims to:
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– Utilize ScienceIO’s AI platform to develop proprietary large language models on Veradigm’s extensive data set, which encompasses a comprehensive network of over 400,000 providers and over 200 million patients, ensuring data integrity and patient privacy.
– Expedite the rollout of new features across Veradigm’s business lines to enrich the customer experience, thereby enhancing its Provider, Payer, and Life Science segments with AI integration.
– Position Veradigm as a leader in the healthcare data intelligence market, fostering future growth and delivering greater value to customers and improved outcomes to patients across the healthcare ecosystem.
Dr. Yin Ho, Veradigm’s Interim CEO and Board member, expressed confidence in the acquisition, emphasizing its potential to enhance Veradigm’s position in the industry. He highlighted Veradigm’s robust data set and envisioned leveraging ScienceIO’s AI platform to extract deeper insights, ultimately leading to higher-quality, cost-effective care.
Greg Garrison, Executive Chairman of the Veradigm Board, underscored the strategic importance of the acquisition in driving continued growth and value creation. He emphasized the board’s confidence in Veradigm’s leadership to navigate the transformation effectively.
Will Manidis, CEO of ScienceIO, emphasized the alignment of the acquisition with ScienceIO’s mission to advance patient care through responsible AI. He expressed gratitude to partners and anticipated leveraging combined strengths to drive innovation in the healthcare ecosystem.
The acquisition, valued at $140 million in cash (subject to customary adjustments), will be financed through cash on hand. The purchase price includes approximately $44 million deferred payment, payable in installments over the first three anniversaries of the closing date.
Veradigm reaffirmed its estimated financial information for fiscal 2023, expecting to discuss this and its 2024 financial outlook in the coming weeks.