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
Small biz makers worry Trump tariffs could be ‘recipe for recession’; Economists, farmers share concerns about trade war
An enthusiastic smile spreads across Katie Mabry Van Dieren’s face as three small groups of new customers flow into her Brookside Plaza shop — a space filled as high as the Shop Local KC owner can reach with colorful, off-beat, and functional goods and gifts from Kansas City makers. “We smelled something wonderful from outside…
Sustainable data center near downtown KCMO to help power capacity with $143M investment
Kansas City is building on its reputation as a hub for partners looking to tap into a region rich with infrastructure built for the future, said Steven Anthony, announcing the grand opening of another major, sustainable data center in KCMO. Edged — a vertically integrated global platform of on-demand data centers with operations designed to…
Potato Potatas grows the business of comfort food from the ground up (and in a pot pie)
Two years ago, Trine’ce Brown took note of restaurant chains like Chipotle and Qdoba, and wondered why there wasn’t already a fast-casual potato bar concept. She decided to start her own — but taking small steps, first working out of a Northland kitchen commissary, the Culinary Center at the Mid-Continent Public Library, starting in May.…
KC2026 team hires cybersecurity, explosives expert for key World Cup ops-planning role
In its latest high-profile move, the team behind Kansas City’s 2026 World Cup planning has tapped a former U.S. Secret Service special agent — notably the veteran of a years-long United Nations General Assembly assignment — to lead KC2026’s safety and security efforts. Kyle Postell already has led critical infrastructure protection efforts, conducted comprehensive vulnerability…