Acquisition strengthens and extends capabilities of the Change Healthcare Intelligent Healthcare Network™
NASHVILLE, Tenn.--(BUSINESS WIRE)--May 4, 2020--
Change Healthcare (Nasdaq: CHNG) announced it has exercised its option to purchase and completed the acquisition of eRx Network (“eRx”), a leading provider of comprehensive, innovative, and secure data-driven solutions for pharmacies.
Change Healthcare acquired 100 percent of the ownership interest in eRx Network for a purchase price of $212.9 million plus cash on the balance sheet. eRx generated approximately $67 million in annual revenue for the twelve-month period ended February 29, 2020. The transaction supports Change Healthcare’s commitment to focus on and invest in core aspects of the business to fuel long-term growth and advance innovation.
eRx’ s real-time pharmacy network is integrated into pharmacies’ workflows. eRx helps pharmacies improve operational efficiency and optimize reimbursement, enabling providers to cost-effectively exchange electronic prescriptions with pharmacies. eRx also facilitates partner programs that help pharmacies improve profitability and helps payers, pharmaceutical companies, and other industry stakeholders administer patient-centric programs.
The addition of eRx brings strategic benefits including a broader solutions portfolio to offer pharmacies, the ability to serve patients, providers and payers more comprehensively and the potential to enter new markets.
“Bringing eRx back into the fold will enable us to leverage our combined scale, breadth of solutions, and network capabilities to increase market penetration, advance innovation, and create new opportunities,” said Neil de Crescenzo, president and CEO, Change Healthcare. “As a leader in delivering advanced technology solutions for pharmacies, providers, and pharmaceutical companies, eRx aligns with our strategy to reduce costs, improve outcomes, and enhance consumer engagement for our customers.”
The combined synergies will offer a broader solutions portfolio to pharmacies and life sciences companies and facilitate innovations on health plan solutions driven by a comprehensive view of members’ claims, bills, payments, and now, pharmacy interactions. From an innovation standpoint, Change Healthcare will now be able to leverage the valuable combination of medical and pharmacy data, and provide eRx customers the benefits of the Intelligent Medical Network with scalable cloud-based technologies.
The acquisition was approved by a special committee of the Board of Directors of Change Healthcare, and the special committee received a fairness opinion from Barclays that the purchase price was fair to Change Healthcare.
Further transaction details can be found in a Form 8-K filed by Change Healthcare today with the Securities and Exchange Commission.
About Change Healthcare
Change Healthcare (Nasdaq: CHNG) is a leading independent healthcare technology company that provides data and analytics-driven solutions to improve clinical, financial and patient engagement outcomes in the U.S. healthcare system. We are a key catalyst of a value-based healthcare system, accelerating the journey toward improved lives and healthier communities. Learn more at changehealthcare.com.
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Evan Smith, CFA
Source: Change Healthcare Inc.