Healthcare AI startup raises a fresh $226M, spends $120M to acquire another healthcare AI startup
An Ohio-based healthcare AI company focused on improving fiscal performance for payers as well as providers is buying a like-minded entity with expertise in streamlining prior-authorization processes.
Announcing the agreement online Dec. 3, buyer Olive and acquiree Verata Health said their combined strengths will allow them to offer providers and payers an end-to-end, AI-powered prior-auth system.
Columbus Business First reports the purchase will cost Olive $120 million, noting that the deal comes the same week Olive closed a $226 million venture capital round.
More than 60 staffers of Verata, which is headquartered in Minnesota, will join Olive, swelling its ranks close to the 500-employee mark.
Those making the move include Jeremy Friese, MD, MBA, a former Mayo Clinic physician executive who has been Verata’s CEO and now becomes Olive’s payer-market president.
Other executives with new roles include Olive’s chief revenue officer, who retains her title while adding president, provider market, and Verata’s chief medical officer, who becomes CMO of Olive.
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.