Homecare acquisition creates $2B business
Honor, a private duty homecare company, has acquired Home Instead, one of the largest in-home care providers in the U.S. The combined companies are worth $2.1 billion.
The deal brings together the largest, highest-touch homecare network and the leading homecare technology and operations platform, making Honor the biggest provider in the $500 billion homecare industry.
Honor, which is based in San Francisco, is known for its technology-forward approach to in-home care. The company has raised $255 million in funding rounds since it was founded in 2014, according to Crunchbase. Investors in the company include Andreessen Horowitz, Baillie Gifford, fund advised by T. Rowe Price Associates, Inc., Rock Springs, Prosus Ventures, Thrive Capital, and 8VC.
Home Instead, based in Omaha, Nebraska, was founded in 1994 and has 90,000 caregivers and 1,200 locations.
“For the past 27 years, Home Instead has demonstrated a powerful combination of leadership, passion and innovation—elevating the standard of care globally and becoming the respected industry leader,” said Seth Sternberg, co-founder and CEO of Honor. “This is an incredibly exciting moment as we bring together the preeminent global homecare brand and network with the best technology and operations platform to provide an even more amazing caregiver and client experience. Never before in the history of the world has a company had this much reach or this much investment in technology to solve caring for aging adults, their loved ones and those who care for them.”
Financial terms of the deal, which was announced Aug. 6, were not disclosed, though Honor stated it will “substantially increase” investments in research and development through engineering and technology. The two companies will also extend their advocacy efforts and social purpose initiatives as a combined entity.
“These two organizations share one passion: transforming the care experience for older adults around the world,” said Jeff Huber, CEO of Home Instead. “For years, our commitment has been to create the world we want to grow older in. This transaction adds fuel to that commitment. Combining the strengths of these companies moves our passion from aspirational vision to inevitable impact.”
Home Instead will keep its name under the acquisition, operating as a subsidiary of Honor.
Honor Care Network will continue under the Honor name, with Seth Sternberg continuing his role as CEO. Jeff Huber will report to Sternberg as CEO of Home Instead.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."