One of the nation’s largest health insurance companies entered into an agreement to buy MDLive.
Evernorth, a Cigna (NYSE: CI) portfolio company, announced it will purchase the Miramar-based telehealth company in a deal expected to close in the second quarter of 2021. The financial terms of the transaction were not disclosed, but MDLive is among a handful of technology companies in Florida with valuations above $1 billion.
Founded in 2009, MDLive’s network includes more than 2,000 physicians across all 50 states. The company offers telehealth care to more than 60 million people.
There was more demand than ever during the Covid-19 pandemic for MDLive’s telehealth services, which increased 95% year-over-year in visits during the first half of 2020. The company in recent months added behavioral health and dermatology to its telehealth services and they were its fastest-growing segments.
“Customers expect more convenient care interactions, and Covid-19 has rapidly accelerated this need,” said Evernorth CEO Tim Wentworth. “We see an immediate opportunity to build a new model of care delivery, one that delivers a connected experience with greater affordability, predictability and simplicity.”
MDLive previously raised millions in venture capital from a roster of high-profile investors include Health Care Service Corp., Health Velocity Capital, Novo Holdings, Industry Ventures, Sentara Healthcare, Sutter Health, Heritage Group and Bedford Funding.
Last September, MDLive received a $50 million investment from Sixth Street Growth, the investment arm of San Francisco-based global investment firm Sixth Street Partners. In 2018, it secured $50 million in a funding round that included Cigna Corp. and Health Care Services Corp.
MDLive is among a handful of Florida-based privately owned companies with valuations over $1 billion, also known as a “unicorn.” Magic Leap, JetSmarter, and Reef Technology are among South Florida’s “unicorn” companies.
Combining Evernorth’s resources with MDLive’s virtual platform and network of virtual care providers will improve health care accessibility and affordability for consumers, said MDLive chairman and CEO Charles Jones.
“Together, we can accelerate MDLive’s growth strategy and ability to serve more customers, while also building new services that will benefit our existing stakeholders, including employees, partners, patients, customers, health plans and providers,” Jones said.
The original article can be found at: BizJournals