RX Savings Solutions sale would see the startup acquired for up to $875M in KC’s biggest-ever exit
September 19, 2022 | Startland News Staff
The McKesson Corporation has agreed to purchase Overland Park-prescribed Rx Savings Solutions in a deal worth nearly $1 billion.
McKesson announced Monday that it had entered into an agreement with the prescription pricing startup valued at up to $875 million — more than double the $425 million price tag for which Kansas City-built Backlot Cars exited in 2020, making the sale the largest startup exit in the history of the metro.
“By joining McKesson, we will be able to offer an exceptionally broad set of services to our clients and strengthen our leadership in prescription price transparency,” said Michael Rea, founder and CEO.
“This is a critical part of our growth journey, and we are excited about what the future holds for Rx Savings Solutions as part of McKesson.”
The deal guarantees RxSS a $600 million upfront payment and additional funds up to $275 million contingent upon its financial performance through 2025, the companies said in a release.
McKesson said the acquisition is in line with its plans for strategic growth, successfully connecting the biopharma space with payer services.
“Rx Savings Solutions’ offerings for employers and patients will strengthen McKesson’s ability to help solve the most common medication challenges related to access, affordability and adherence,” said Brian Tyler, CEO.
“We expect the acquisition of Rx Savings Solutions to accelerate McKesson’s growth priority in biopharma services by extending our ecosystem of differentiated medication access solutions to patients. Together with Rx Savings Solutions, McKesson will amplify our efforts to advance health outcomes for all.”
RX Savings Solutions will become part of the company’s prescription technology solutions business. The combined organization hopes to deliver new capabilities for employers and patients to McKesson’s portfolio of pharmacy, provider, payer, and biopharma services.
Founded in 2012, RX Savings Solutions contracts with health plans and self-funded employers in an effort to maximize the effectiveness of benefit design to lower prescription cost savings for members.
To date, the company has raised more than $22 million and is ranked number three within Startland News’ most recent Kansas City Venture Capital-Backed Companies report.
2022 Startups to Watch
stats here
Related Posts on Startland News
Matt Baysinger: Choir Bar revival is just one note in Swell Spark’s chorus of experiences planned for 2025
Developments from within Kansas City-based entertainment group Swell Spark are coming in a round this winter, said Matt Baysinger, starting with the crescendoing return of its Choir Bar group singalong experience after a five-year hiatus. “We want to create places where people can come together, relax, and try something a little different,” said Baysinger, whose…
Early success gave this young entrepreneur the credibility to bridge community, business gaps
At 21, Jonathan Pitallo is already an entrepreneur, real estate agent, and investor, he shared, but community engagement might be his biggest passion, he said. The Kansas City, Kansas, resident and Belton native founded Vive Promo and Print, is an agent at EXP Realty, and owns three properties, but he’s also an ambassador for the…
KC inventor rolls elevated litter box to market (and cats already are making the leap)
Amy Leiker can take criticism and feedback, the Lenexa-based LoftyLoo creator said, noting she couldn’t have survived a career in corporate marketing and health care without it. So when it comes to her elevated litter box invention, she’s quick to jump to its defense, but open to making the product even more user (and cat)…
I am Iron Man: Overland Park startup’s AI mouse brings voice-activated tech to your fingertips
In the Marvel Cinematic Universe, Tony Stark talks to an artificial intelligence program within his Iron Man suit to get immediate access to information — as if he’s having a conversation with AI. Although Stark is a fictional character imbued with vast powers via such tech, Jerry Hsu said, users don’t have to be a…