Veradigm to Leverage ScienceIO’s Leading Healthcare Artificial Intelligence (AI) Platform on the Company’s Large-Scale, High-Quality Data Set to Build Advanced, Private Language Models for Healthcare
Expected to Provide Highly Differentiated and More Advanced Products to Veradigm Customers
Acquisition Will Help Accelerate Platform Improvements Across the Veradigm Network, including the Provider, Payer, and Life Sciences Businesses
Next-Generation Products Expected to Improve Outcomes and Lower Costs Across the Healthcare Ecosystem
Positions Veradigm for the Future as Higher Margin Technology and Data Products Company
Reaffirms Previously Issued 2023 Financial Information
Veradigm Inc. (the Company), a leading provider of healthcare data and technology products and solutions, today announced that it has signed a definitive agreement to acquire ScienceIO. The transaction has been unanimously approved by the Veradigm Board of Directors and is expected to close as promptly as practicable following the satisfaction of customary closing conditions.
Founded in 2019, ScienceIO is a leading AI platform and foundation model provider for healthcare. ScienceIO’s models power diverse healthcare use cases while preserving patient privacy – including patient anonymization, record linkage, information extraction, summarization, and predictive analytics.
Through the acquisition, Veradigm expects to:
- Leverage ScienceIO’s AI platform to create its own proprietary large language models on Veradigm’s rich data set, which spans a comprehensive network of over 400,000 providers and over 200 million patients, while ensuring data integrity and patient privacy
- Fast-track the launch of new features across Veradigm’s business to enhance the customer experience
- This injection of AI is an investment across the entire Veradigm portfolio including the Provider, Payer, and Life Science businesses
- Provide the Company with a growth engine for the future by repositioning Veradigm as a leader in the healthcare data intelligence market
- Ultimately deliver greater value to customers and better outcomes to patients throughout the healthcare ecosystem
“Our core business continues to be strong, profitable, and healthy and we are accelerating our growth strategy with this acquisition,” said Dr. Yin Ho, Veradigm’s Interim CEO and a member of the Company’s Board. “Veradigm has built one of the most unique and valuable assets in the healthcare industry: a large-scale, high-quality data set that spans providers, payers, and life sciences companies.
“By building on our existing partnership and fully integrating ScienceIO’s AI platform, we will be able to extract greater and more accurate insights from this data set and build an AI center of excellence to empower Veradigm’s portfolio across all of our business units with market-leading capabilities. In doing so, we will be able to provide more highly differentiated and advanced products to provider, payer, and life sciences customers that ultimately result in higher quality, lower cost care for patients, while positioning Veradigm as a higher-margin technology and data products company poised for future growth and value creation.”
Greg Garrison, Executive Chairman of the Veradigm Board said, “This acquisition is a natural next step in the strategy our Board has been focused on over the past year to drive continued growth across our business units and create outsized value from the data and analytics of our existing business, while maintaining our healthy balance sheet and strong cash position. We will be at the center of the largest platform shift in healthcare as the industry becomes increasingly focused on value-based care while also reducing administrative burden. The Board has full confidence in Yin and our President, Tom Langan, to lead the Company through this transformation.”
“Together with Veradigm, we will provide new features and capabilities for providers and partners, accelerated by ScienceIO’s differentiated AI platform,” said Will Manidis, CEO at ScienceIO. “Joining Veradigm aligns with ScienceIO’s mission to better serve patients and healthcare professionals with the help of responsible AI. We are thankful for our partners who made this moment possible and we look forward to bringing together our combined strengths to drive innovation and value in the healthcare ecosystem.”
The transaction will be funded through cash on hand and is not subject to a financing condition. The purchase price to be paid for ScienceIO is $140 million in cash (subject to customary adjustments for cash, indebtedness, working capital, and transaction expenses), an aggregate of approximately $44 million of which is deferred and substantially all of which is payable in installments on each of the first three anniversaries of the closing date.
2023 Financial Information
The Company has reaffirmed the estimated, unaudited ranges of financial information for fiscal 2023 that it provided on January 10, 2024, at the J.P. Morgan Healthcare Conference and in the Company’s Form 8-K filed on January 10, 2024. Management expects to discuss this information, as well as its 2024 financial outlook, in the coming weeks.
About Veradigm
Veradigm is a healthcare technology company that drives value through its unique combination of platforms, data, expertise, connectivity, and scale. The Veradigm Network features a dynamic community of solutions and partners providing advanced insights, technology, and data-driven solutions for the healthcare provider, payer, and biopharma markets. For more information about how Veradigm is fulfilling its mission of Transforming Health, Insightfully, visit veradigm.com, or find Veradigm on LinkedIn, Facebook, Twitter, and YouTube.
About ScienceIO
ScienceIO is the leading language model company for healthcare. The ScienceIO platform empowers professionals and organizations with secure, responsible AI to streamline workflows, improve decision-making, and enhance patient outcomes. ScienceIO’s language models are purpose-built to transform complex medical text into usable data and actionable insights. With ScienceIO, the future of healthcare is smarter, faster, and more connected.
Originally announced February 27th, 2024
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