Digital health startup Sharecare acquired CareLinx for US$65 million and is expanding its influence in the field of home health.
CareLinx, located in Burlingame, California, operates an online marketplace for caregivers. Its business structure is different from other agencies that directly hire nursing staff. Instead, families that hire caregivers become employers of record, and CareLinx manages payroll and provides insurance in exchange for part of their income.
This startup was founded in 2011 when it was Acquired by Generali Global Assistance 2017. CareLinx claims that there are 450,000 caregivers on its platform.
The company has also established partnerships with the Department of Veterans Affairs and three major health plans to provide its services to more than one million Medicare Advantage members.
Through the acquisition, Sharecare will seek to expand CareLinx’s footprint through health plans and providers.
Sharecare has an important supporter in Anthem Invest 50 million U.S. dollars in the company Because it hopes to go public through a special purpose acquisition company (SPAC), although the two companies have been cooperating for many years after Sharecare acquired Healthways’ population health business.
“So far, CareLinx has shown impressive organic growth, and we believe that Sharecare is capable of continuing this trajectory,” Sharecare President and Chief Financial Officer Justin Ferrero said in a press release. “In fact, CareLinx can be sold to all three of our channels. We already have several health plan and provider customers who are actively looking for this type of solution.”
CareLinx brought about US$5 million in revenue last year and is expected to reach US$20 million this year.
According to the terms of the transaction, Sharecare paid US$54.6 million in cash and US$10.4 million in stocks.
Photo Credit: Kritchanut, Getty Images
