Accolade agrees to buy medical-expert company for $460 million

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Accolade Inc. said late Thursday it has agreed to buy Innovation Specialists LLC, which does business as 2nd.MD, a “leading” expert medical opinion and medical decision support company based in Houston, for $460 million. The deal is expected to close by the end of February, and under the terms of the agreement, Accolade will pay $230 million in cash, $130 million in Accolade stock, and up to $100 million of Accolade stock payable upon certain revenue milestones after the closing. “With healthcare utilization expected to rise significantly in 2021, on the heels of the COVID-19 pandemic, the integration of 2nd.MD with Accolade’s health and benefits solutions and clinical service offerings will simplify the healthcare experience for employees and increase return on investment for employers by ensuring their employee populations are receiving appropriate care and reducing unnecessary treatment in high-cost scenarios,” the company said. Accolade will continue to offer 2nd.MD as a stand-alone service as well. Shares of Accolade rallied more than 7% in the extended session Thursday after ending the regular trading day up 0.2%.
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