Transcarent CEO Glen Tullman spent much of 2024 hinting that his health benefits upstart might be shopping around for acquisitions, and just over a week into the new year he’s making good on it: Transcarent on Wednesday announced it was buying company Accolade, another benefits company, for $621 million — more than double Accolade’s value on the stock market the day before.
Trascarent raised $126 million in 2024, and the cash acquisition is being funded by General Catalyst and Tullman’s 62 Ventures. Accolade shareholders will receive $7.03 per share, a 110% premium over the stock’s Tuesday closing price of $3.35. The deal is expected to close in the second quarter of the year.
Both Transcarent and Accolade are part of a wave of upstarts that promise to help self-insured employers deliver better health care at lower cost to their workers, and their combination comes amid soaring health care costs that are projected to increase significantly in 2025.
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