Two US-based, corporate backed companies – medical data exchange Datavant and healthcare data software provider Ciox Health – agreed to a merger yesterday valuing the joint business at $7bn.
Launched by biopharmaceutical company builder Roivant Sciences in 2017, Datavant provides software which helps businesses manage privacy, security and compliance for medical data repositories while sharing said data.
Datavant had raised a total of $83m as of a $40m series B round in October 2020 led by Transformation Capital and backed by Roivant, fellow existing investor Flex Capital, medical product provider Johnson & Johnson and health insurer Cigna, the last two through Johnson & Johnson Innovation – JJDC and Cigna Ventures respectively.
Ciox Health runs a clinical data network which helps healthcare provider generate crucial insights from patients’ medical records. Pharmaceutical firm Merck & Co’s Global Health Innovation (GHI) Fund led a $30m round for the company in mid-2019 with New Mountain Capital.
The merged company will retain the Datavant name, and the transaction will be supported by an undisclosed amount of funding from investment firm Sixth Street and investment banking firm Goldman Sachs’ West Street Strategic Solutions fund.
Datavant chief executive Travis May said: “Every decision made in healthcare should be informed by data.
“Our goal is to create a ubiquitous, trusted, and neutral data ecosystem where parties across the healthcare system can seamlessly and securely exchange data – unlocking better outcomes, faster research and healthcare at a lower cost. The combined company is positioned to transform America’s health infrastructure and power the health data economy.”
Pete McCabe, Ciox Health’s CEO, added: “We are thrilled to join forces with the Datavant team to connect health data to improve patient outcomes.
“Together we are well positioned to navigate the technical, operational, legal, and regulatory challenges to doing so, and are committed to acting as a neutral connectivity solution for our many customers and partners.”
