– OptimizeRX acquires RMDY Health, a multipurpose digital therapeutics SaaS platform, for $16 million in cash and equity.
– Acquisition will enhance OptimizeRx existing digital platform with technology solutions tailored for digital therapeutics and extends offerings to SaaS-based patient engagement markets.
– RMDY will maintain its technology team in Tel Aviv, Israel, and U.S. based personnel and use the OptimizeRx New Jersey HQ.
OptimizeRx announced it will acquire RMDY Health, a multipurpose digital therapeutics SaaS platform, for $16 million in cash and equity. The RMDY Health platform is used by pharma, payers, MedTech companies and medical associations nationwide. The acquisition adds three new client segments to OptimizeRx’s existing patient engagement platform – payers, Medtech and medical associations – further simplifying chronic disease management and drug adherence for healthier results at lower costs.
Build and deploy dynamic, branded digital programs across a range of healthcare and life science initiatives
Founded in 1999, RMDY Health’s mission is to offer healthcare and life sciences companies a powerful and flexible platform to bring them to the forefront of the digital realm for increased efficiency and outcomes. RMDY Health’s SaaS platform offers a complete digital framework to help life science and healthcare stakeholders rapidly and effortlessly design and launch their own white-label collaborative digital care and patient support programs. The company’s web and mobile platform support a wide range of digital therapeutic initiatives, with a focus on care management, chronic disease management, pharma patient support programs, research, and wellness.
Financial Details
In consideration for 100% of RMDY Health, its shareholders will receive $8 million in cash and $8 million in equity when the transactions close, which is estimated to be within the next 30 days subject to certain closing conditions. RMDY Health’s estimated annual revenue for 2019 is $3 million. Only revenue from the closing date through the end of the year will be included in OptimizeRx’s annual consolidated financial statements.
As part of the acquisition, RMDY will maintain its technology team in Tel Aviv, Israel, and U.S. based personnel and use the OptimizeRx New Jersey headquarters. OptimizeRx is being advised by Excel Partners on the transaction and RMDY Health is being advised by Reade Street Advisors on the transaction.
Acquisition Benefits for OptimizeRx
OptimizeRx is bridging the communication gap between pharma and providers with its digital health messaging platform delivered through its nationwide network of leading electronic health record (EHR) and ePrescribing providers. The addition of RMDY Health expands the reach of this network by using patient apps and web access as an additional channel for digital health messaging.
This strategic acquisition marks the second for OptimizeRx over the past year focused on enhancing patient engagement. It further diversifies the company’s recurring revenue stream and scales its solution set to better address larger opportunities in digital health.
The Bigger Picture
Digital therapeutics (DTx) consists of delivering rich patient programs with treatment and affordability information, lifestyle and condition trackers, Internet device connectivity, forms, and surveys, with this all supported by a wide range of communication capabilities delivered via chat, bots, audio, and telehealth. According to Grand View Research, the global market for digital therapeutics is growing at a compounded annual growth rate of 21% and is expected to hit $9.4 billion by 2025.
RMDY Health enables this functionality for its customers, with its DTx solutions delivering a variety of intervention mechanisms that help treat chronic conditions, such as diabetes and heart disease.
We welcome the RMDY team and their powerful SaaS platform to support our mission of improving medication adherence and care coordination,” said William Febbo, CEO of OptimizeRx. “This acquisition is especially timely, given how stakeholders are increasingly shifting their budgets to digital delivery as the preferred method of communicating to physicians and patients.”
“By adding RMDY Health’s complementary capabilities to our platform,” continued Febbo, “we not only extend our ability to engage doctors and patients for our pharmaceutical clients, we introduce important client segments to our solution suite. We can now further bridge the critical communication gaps between pharma, healthcare providers, payers, medical associations and patients.”
“We see a great cultural fit with Amir and his team, given our mutual mission to transform communication across the provider-pharma-patient-payer care continuum. They bolster our presence within digital therapeutics, provide additional opportunities for recurring revenue growth, extend our reach within existing clients and add additional client segments, as well as enhance our digital platform to facilitate more scale. We expect this acquisition to be accretive within the first 18 months and believe we have aligned to have a highly incentivized team pushing for growth,” Febbo added.
