Datavant and Ciox Health have agreed to merge in a deal valued at $7 billion, the health data companies said on Wednesday.
The combined company, to be named Datavant, will allow a secure exchange of data among its network, which includes more than 2,000 U.S. hospitals and 15,000 clinics as well as data analytics companies and government agencies.
The companies said the deal is supported by their group of investors led by investment firm New Mountain Capital, Labcorp, Cigna Ventures and Roivant Sciences.
Roivant is an existing investor in San Francisco-headquartered Datavant, which provides data sharing services to the healthcare industry.
Investment firm Sixth Street, which has also made a significant new investment, will join the merged company’s board of directors at deal completion, Datavant and Ciox Health added.
The new company will be led by Ciox Chief Executive Officer Pete McCabe, while Datavant CEO Travis May will take on the role of president and join the board of directors, the companies said.
The deal is expected to close in the third quarter, the companies said.
Source: Reuters.com