Accolade Stock Soars After $621 Million Transcarent Acquisition Deal
Investing.com -- Accolade (NASDAQ:ACCD) shares surged 100% after the announcement that Transcarent will acquire the health advocacy and primary care company for $7.03 per share in cash. This offer represents an approximate 110% significant premium based on Accolade's closing share price on the last trading day before the public announcement of the transaction, January 7, 2025.
The definitive agreement, which values Accolade at approximately $621 million, has been unanimously approved by the Boards of Directors of both companies. The completion of the acquisition is expected in the second quarter of 2025, subject to the approval of Accolade's shareholders, regulatory approvals, and other customary closing conditions. Once the transaction closes, Accolade will become a private company, and its common stock will be delisted from Nasdaq.
The strategic merger aims to enhance Transcarent's mission of simplifying access to high-quality, affordable health and care services by integrating Accolade's personalized healthcare platform and expertise in health advocacy, expert medical opinions, and primary care. The combined entity is expected to offer a more personalized and engaging member experience, leading to higher utilization and reduced healthcare costs.
Transcarent's AI-powered WayFinding and comprehensive care experiences, including Cancer Care, Surgical Care, and Weight Health, will complement Accolade's robust healthcare platform. This integrated platform is anticipated to facilitate easier access to quality care, reduce unnecessary treatments and procedures, and alleviate administrative burdens for healthcare providers.
The transaction will be financed through a fully committed equity financing led by General Catalyst and Glen Tullman's 62 Ventures. Accolade's Board of Directors has recommended that shareholders approve the merger agreement.
Following the acquisition announcement, Accolade withdrew its previously provided financial guidance for the fiscal year and will not hold the previously scheduled conference call. The company plans to file its Form 10-Q for the third quarter ending November 30, 2024, on Friday, January 10, 2025, and expects its financial results to fall within the previously provided guidance range.