Medical billing software producer Cedar has agreed to acquire US-based healthcare administration platform operator Ooda Health for $425m setting up exits for several healthcare and insurance corporates.
The acquisition follows Cedar’s $200m series D round led by fund manager Tiger Global Management in March 2021.
Founded in 2017, Ooda Health provides healthcare administration software including a patient payment platform called OodaPay and an authorisation automation platform called Ooda Optic.
Around 20 organisations use Ooda Health’s platform to connect their healthcare patient workflows including Blue Cross Blue Shield of Arizona and CommonSpirit Health.
Following the close of the deal, Seth Cohen, co-CEO and co-founder of Ooda Health, will become president of Cedar and join the company’s board of directors.
Anshul Amar and Arel Lidow, co-founders of Ooda Health and Cedar respectively, will both become co-chief makers at Cedar.
Cohen said: “We are tackling healthcare administration and billing head-on by building the most comprehensive technology and services platform for providers and payers. We are thrilled to unite our two teams with that goal in mind and are excited to make a more positive and meaningful impact on the lives of consumers.”
Insurance firm Blue Shield of California had supplied Ooda Health with $1.5m of funding as part of its $40.5m series A round in 2018 that was led by Oak HC/FT and DFJ.
Hospital operators Dignity Health and Hill Physicians also took part in the round alongside insurance providers Blue Cross Blue Shield of Arizona and Blue Cross Blue Shield of Massachusetts. The latter participated through its investment subsidiary, Zaffre Investments.