AAA Emdeon accepts Change Healthcare in $135m deal

Emdeon accepts Change Healthcare in $135m deal

Healthcare payment manager Emdeon has agreed to acquire Change Healthcare, a US-based provider of medical consumer engagement services, for $135m, providing exits to health insurer BlueCross BlueShield and conglomerate Mitsui.

Founded in 2007, Change Healthcare has created an online platform that helps businesses and employees find the best healthcare plan available.

The company will form the core of Emdeon’s consumer engagement business following the closing of the transaction. The cash payment could be boosted by up to $50m if certain performance objectives are met by the end of 2017.

Change Healthcare had raised about $35m in funding, according to SEC filings, including a $9.3m series B round in 2012 featuring Mitsui, BlueCross BlueShield Venture Partners, which acts as BlueCross BlueShield’s corporate venturing fund, investment firm Solidus and venture firm Sandbox Industries.

All four subsequently contributed to a series D round the following year alongside HLM Venture Partners, Noro-Moseley Partners and West Health Investment Fund.

Doug Ghertner Change Healthcare’s president & CEO said: “By joining the Emdeon team, we will have access to the resources necessary to accelerate our growth and to become the premier platform for consumer engagement in healthcare.”

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