Virgin Pulse has been making waves in the health and wellness industry with a staggering $3 billion deal. This acquisition is a testament to the company's innovative approach to employee engagement and well-being.
The company behind Virgin Pulse is a joint venture between Virgin Group and Insignia Health. Virgin Group's investment arm, Virgin Group Holdings, owns a significant stake in the company.
Virgin Pulse's focus on digital health and wellness has resonated with major players in the industry, including UnitedHealth Group, which was a major backer of the company before it was acquired.
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Virgin Pulse Mergers
Virgin Pulse has undergone a significant merger with HealthComp, a benefits and analytics platform.
The merger is valued at $3 billion, with New Mountain Capital becoming the majority owner of the combined entity.
The combined company will serve more than 20 million members and address costs for over 1,000 self-insured employers.
Virgin Pulse's CEO, Chris Michalak, will continue to lead the company as CEO of the new entity.
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HealthComp's analytics database will benefit Virgin Pulse's health plan and health system clients by providing closed-loop data on health outcomes and the true ROI of investing in member experience and well-being programs.
Virgin Pulse is backed by Marlin Equity Partners, while HealthComp is backed by New Mountain Capital.
The merger is expected to close in the fourth quarter of 2023, pending regulatory approvals and satisfaction of all closing conditions under the definitive agreement.
Here are the key players involved in the merger:
The merger aims to reduce healthcare costs and improve outcomes by delivering a comprehensive health platform-as-a-service that improves member decision-making and behavior.
Virgin Pulse Merges in $3B Deal
Virgin Pulse, a health customer relationship management and engagement platform, has completed a $3 billion merger with HealthComp, a benefits and analytics platform.
The combined company aims to reduce healthcare costs and improve outcomes by delivering a comprehensive health platform-as-a-service that improves member decision-making and behavior.
The merged entity will serve more than 1,000 self-insured employers and over 20 million members.
New Mountain Capital will be the majority owner of the joined entity.
The combined company will integrate plan design, plan management, payment integrity, health navigation, preventive care, and digital therapeutic services into Virgin Pulse's Homebase for Health platform.
The merger is expected to close in the fourth quarter of 2023, pending regulatory approvals and satisfaction of all closing conditions under the definitive agreement.
Virgin Pulse's CEO, Chris Michalak, will serve as the CEO of the combined company.
The merged entity plans to deliver an average savings of up to $3,000 per employee per year through flexible health plan designs.
The combined technologies will drive members to return to the platform an average of six times daily with a sustained engagement rate of up to 50% through concierge-level experiences.
The merged entity aims to lower inpatient costs by 48% for members and deliver a 3:1 value-on-investment for clients through whole health advocacy, support, and navigation.
Virgin Pulse's Homebase for Health platform for employers integrates plan management, plan design, payments, preventative care, health navigation, and digital therapeutics.
HealthComp offers concierge-level services, analytics, and cost management.
The combined company will be backed by Morgan Health and Blackstone, in addition to New Mountain Capital.
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Providence to Merge with HealthComp
Virgin Pulse, a digital health and well-being platform, is merging with HealthComp, a benefits and analytics platform. The combined entity will serve over 20 million members and address costs for over 1,000 self-insured employers.
The merger was announced in September, with the companies expecting to close the deal later this year. The terms of the merger were not disclosed, but the Wall Street Journal reported that the deal could be worth $3 billion.
New Mountain Capital, which acquired HealthComp three years ago, will become the majority owner of the combined entity. Virgin Pulse is backed by Marlin Equity Partners, while Morgan Health and Blackstone will also provide financial backing.
The combined company will integrate plan design, plan management, payment integrity, health navigation, preventive care, and digital therapeutic services into Virgin Pulse's Homebase for Health platform. This will allow members to manage all these capabilities through a single high-tech/high-touch experience.
Here's a breakdown of the key players involved in the merger:
Frequently Asked Questions
Did Marlin Equity buy Virgin Pulse?
Yes, Marlin Equity acquired Virgin Pulse in 2018. This marked the beginning of Virgin Pulse's expansion through strategic acquisitions in the benefits platform sector.
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