Primary care provider One Medical agreed yesterday to buy Iora Health, a US-based peer backed by health insurer Humana and automotive and media group Cox Enterprises, in a $2.1bn all-share deal.
Founded in 2010, Iora runs a network of 47 clinics offering healthcare to recipients on federal health insurance scheme Medicare, many of which are senior citizens. Its activities will complement One Medical’s customer base, most of which are privately insured.
The deal will give Iora’s shareholders a 26.1% stake in the merged business. One Medical floated in January 2020 in a $245m initial public offering giving it a valuation of roughly $1.7bn following venture funding from investors including internet technology group Alphabet’s GV unit.
Iora has raised about $350m in funding, $126m coming in a series F round led by investment firm Premji Invest and backed by Cox Enterprises in February 2020.
Investment and financial services group Fidelity’s F-Prime Capital and Devonshire Investors vehicles also took part in the series F round along with Temasek, Flare Capital Partners, Polaris Partners, Khosla Ventures and .406 Ventures.
The company had secured $100m in 2018 from Humana and GE Ventures, the now shuttered investment vehicle for industrial manufacturer General Electric, as well as Devonshire Investors, F-Prime, Flare Capital Partners, .406 Ventures, Khosla Ventures, Polaris Partners and Temasek.
Temasek had already led Iora’s $75m series D round in 2016, investing with Humana, Flare Capital Partners and existing backers GE Ventures, Rice Management Company, .406 Ventures, Khosla Ventures and Polaris Partners.
Amir Dan Rubin, One Medical’s chairman and CEO, said: “We are delighted to announce plans to combine with Iora Health, a technology-powered primary care leader delivering outstanding member-based, value-based care for adults 65+ enrolled in Medicare Advantage and other at-risk reimbursement models.
“Together we will expand our addressable market to serve more members in more geographies with digital and in-person care across every stage of life, with further capabilities to deliver care within full-risk models. Together with Iora Health, we can deliver better health, better care and lower costs for children, adults and seniors.”
