Veradigm to Leverage ScienceIO’s Leading
Healthcare Artificial Intelligence (AI) Platform on the Company’s
Large-Scale, High-Quality Data Set to Build Advanced, Private
Language Models for Healthcare
Expected to Provide Highly Differentiated and
More Advanced Products to Veradigm Customers
Acquisition Will Help Accelerate Platform
Improvements Across the Veradigm Network, including the Provider,
Payer and Life Sciences Businesses
Next-Generation Products Expected to Improve
Outcomes and Lower Costs Across the Healthcare Ecosystem
Positions Veradigm for the Future as Higher
Margin Technology and Data Products Company
Reaffirms Previously Issued 2023 Financial
Information
Veradigm Inc. (NASDAQ: MDRX) (the “Company”), a leading provider
of healthcare data and technology products and solutions, today
announced that it has signed a definitive agreement to acquire
ScienceIO. The transaction has been unanimously approved by the
Veradigm Board of Directors and is expected to close as promptly as
practicable following the satisfaction of customary closing
conditions.
Founded in 2019, ScienceIO is a leading AI platform and
foundation model provider for healthcare. ScienceIO’s models power
diverse healthcare use cases while preserving patient privacy –
including patient anonymization, record linkage, information
extraction, summarization and predictive analytics.
Through the acquisition, Veradigm expects to:
- Leverage ScienceIO’s AI platform to create its own
proprietary large language models on Veradigm’s rich data
set, which spans a comprehensive network of over 400,000
providers and over 200 million patients, while ensuring data
integrity and patient privacy;
- Fast track the launch of new features across Veradigm’s
business to enhance the customer experience. This injection of
AI is an investment across the entire Veradigm portfolio including
the Provider, Payer, and Life Science businesses;
- Provide the Company with a growth engine for the future by
repositioning Veradigm as a leader in the healthcare data
intelligence market; and
- Ultimately deliver greater value to customers and
better outcomes to patients throughout the healthcare
ecosystem.
“Our core business continues to be strong, profitable and
healthy, and we are accelerating our growth strategy with this
acquisition,” said Dr. Yin Ho, Veradigm’s Interim CEO and a member
of the Company’s Board. “Veradigm has built one of the most unique
and valuable assets in the healthcare industry: a large-scale,
high-quality data set that spans providers, payers and life
sciences companies. 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 and
build an AI center of excellence to empower Veradigm’s portfolio
across all of our business units with market-leading capabilities.
In doing so, we will be able to provide more highly differentiated
and advanced products to provider, payer and life sciences
customers that ultimately result in higher quality, lower cost care
for patients, while positioning Veradigm as a higher-margin
technology and data products company poised for future growth and
value creation.”
Greg Garrison, Executive Chairman of the Veradigm Board, said,
“This acquisition is a natural next step in the strategy our Board
has been focused on over the past year to drive continued growth
across our business units and create outsized value from the data
and analytics of our existing business, while maintaining our
healthy balance sheet and strong cash position. We will be at the
center of the largest platform shift in healthcare as the industry
becomes increasingly focused on value-based care while also
reducing administrative burden. The Board has full confidence in
Yin and our President, Tom Langan, to lead the Company through this
transformation.”
“Together with Veradigm, we will provide new features and
capabilities for providers and partners, accelerated by ScienceIO’s
differentiated AI platform,” said Will Manidis, CEO of ScienceIO.
“Joining Veradigm aligns with ScienceIO’s mission to better serve
patients and healthcare professionals with the help of responsible
AI. We are thankful for our partners who made this moment possible
and we look forward to bringing together our combined strengths to
drive innovation and value in the healthcare ecosystem.”
The transaction will be funded through cash on hand and is not
subject to a financing condition. The purchase price to be paid for
ScienceIO is $140 million in cash (subject to customary adjustments
for cash, indebtedness, working capital and transaction expenses),
an aggregate of approximately $44 million of which is deferred and
substantially all of which is payable in installments on each of
the first three anniversaries of the closing date.
2023 Financial Information
The Company has reaffirmed the estimated, unaudited ranges of
financial information for fiscal 2023 that it provided on January
10, 2024, at the J.P. Morgan Healthcare Conference and in the
Company’s Form 8-K filed on January 10, 2024. Management expects to
discuss this information, as well as its 2024 financial outlook, in
the coming weeks.
About Veradigm®
Veradigm is a healthcare technology company that drives value
through its unique combination of platforms, data, expertise,
connectivity, and scale. The Veradigm Network features a dynamic
community of solutions and partners providing advanced insights,
technology, and data-driven solutions for the healthcare provider,
payer, and biopharma markets. For more information about how
Veradigm is fulfilling its mission of Transforming Health,
Insightfully, visit www.veradigm.com, or find Veradigm on LinkedIn,
Facebook, Twitter, and YouTube.
About ScienceIO
ScienceIO is the leading language model company for healthcare.
The ScienceIO platform empowers professionals and organizations
with secure, responsible AI to streamline workflows, improve
decision-making and enhance patient outcomes. ScienceIO’s language
models are purpose-built to transform complex medical text into
usable data and actionable insights. With ScienceIO, the future of
healthcare is smarter, faster and more connected.
Disclaimer and Forward-Looking Statement Information
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include, but are not limited
to, statements regarding the anticipated benefits from the
ScienceIO acquisition, the Company’s strategic priorities and
growth opportunities and the Company’s plans regarding future
communications to its investors. These forward-looking statements
are based on the current beliefs and expectations of the Company’s
management with respect to future events, only speak as of the date
that they are made and are subject to significant risks and
uncertainties. Such statements can be identified by the use of
words such as “future,” “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “plans,” “predicts,” “will,” “would,”
“could,” “continue,” “can,” “may,” “look forward,” “aim,” “hopes,”
and similar terms, although not all forward-looking statements
contain such words or expressions. Actual results could differ
significantly from those set forth in the forward-looking
statements. In addition, the estimated, unaudited ranges of
financial information for fiscal 2023 that the Company provided on
January 10, 2024 were preliminary, unaudited, and based on
estimates and subject to completion of our financial closing
procedures. Such results were not a comprehensive statement of the
Company’s financial results for fiscal 2023, and they may
change.
Important factors that may cause actual results to differ
materially from those in the forward-looking statements, among
others: the occurrence of any event, change or other circumstance
that could give rise to the termination of the merger agreement
relating to the proposed acquisition; the ability to satisfy all
conditions to completion of the proposed acquisition; unexpected
costs, charges or expenses resulting from the proposed acquisition;
the diversion of management’s attention from the Company’s ongoing
business operations due to the proposed acquisition; changes in the
financial condition of the markets that the Company and ScienceIO
serve; risks associated with ScienceIO’s product and service
offerings or its results of operations; the challenges, risks and
costs involved with integrating the operations of ScienceIO with
the Company’s operations; the Company’s ability to realize the
anticipated benefits of the proposed acquisition; and other factors
contained in the “Risk Factors” section and elsewhere in the
Company’s filings with the SEC from time to time, including, but
not limited to, its Annual Report on Form 10-K, its Quarterly
Reports on Form 10-Q and its Current Report on Form 8-K filed on
January 10, 2024. The Company does not undertake to update any
forward-looking statements to reflect changed assumptions, the
impact of circumstances or events that may arise after the date of
the forward-looking statements, or other changes over time, except
as required by law.
© 2024 Veradigm Inc. and/or its affiliates. All rights
reserved.
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version on businesswire.com: https://www.businesswire.com/news/home/20240226358989/en/
Investors: Jenny Gelinas
312-506-1237 jenny.gelinas@veradigm.com
Media: Concetta Rasiarmos
312-447-2466 concetta.rasiarmos@veradigm.com
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