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CHICAGO – Veradigm Inc. (NASDAQ:MDRX), a prominent healthcare data and technology solutions provider, has announced the definitive agreement to acquire ScienceIO, a leader in healthcare artificial intelligence (AI) platforms. The acquisition, approved by Veradigm’s Board of Directors, is expected to be finalized swiftly following the satisfaction of customary closing conditions.
ScienceIO, established in 2019, specializes in AI foundation models for healthcare, supporting a range of use cases while maintaining patient privacy. The acquisition is set to provide Veradigm with proprietary large language models based on its extensive data set, which includes over 400,000 healthcare providers and more than 200 million patients.
Veradigm anticipates that this move will expedite the introduction of new features across its business segments, including Provider, Payer, and Life Sciences, enhancing customer experience and outcomes.
The company aims to leverage ScienceIO’s AI platform to extract more accurate insights from its data set and establish an AI center of excellence. This initiative is expected to yield more advanced and differentiated products for their customers, potentially leading to higher quality care at reduced costs.
Dr. Yin Ho, Interim CEO and Board member of Veradigm, expressed that the acquisition accelerates the company’s growth strategy. “By building on our existing partnership and fully integrating ScienceIO’s AI platform, we will be able to extract greater and more accurate insights from this data set,” said Ho.
The transaction, valued at $140 million in cash with certain adjustments, will be funded through cash on hand. Approximately $44 million of the purchase price is deferred, payable in installments on each of the first three anniversaries of the closing date.
Veradigm also reaffirmed the financial estimates for fiscal 2023 previously issued at the J.P. Morgan Healthcare Conference and in the company’s Form 8-K filed on January 10, 2024.
The information in this article is based on a press release statement.
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This story originally appeared on Investing
