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
Exited founders: Face the tough conversations first; avoid a messy post-honeymoon breakup
Preparing for an exit begins with co-founder alignment at the startup’s launch, three veteran Kansas City founders agreed. “You are getting married to your founders,” explained Tony Caudill, who co-founded two tech startups with his best friend — including aware3, which was acquired in 2018 by Nelnet. “Just like when you find your mate of…
Hy-Vee’s small biz competition sends Midwest entrepreneurs racing for $50K checkout; Here are the winners
BaKIT Box, a Chicago-based subscription service offering baking kits inspired by diverse global cuisines, took home the $30,000 grand prize at the 2024 Hy-Vee OpportUNITY Inclusive Business Summit. Shelley Gupta, the founder and CEO of BaKIT Box, was thrilled to receive the grand prize, she said. “It feels incredible,” Gupta said. “I flew here last…
How city dollars could help crime victims get back to business; Mayor unveils new fund to support struggling entrepreneurs
A newly introduced fund aimed at helping KCMO small businesses recover from and prevent property crimes — offering grants up to $3,000 for damage repairs and $5,000 for security upgrades — is a step in the right direction, said Joe Giammanco, whose pizza shop was recently hit by criminals. “Programs like this are going to…
KC pet tech startup fetches $120K Techstars investment, taking founder’s pitch to Atlanta
As Kansas City-built Interplay prepares to bring its debut product to market, the pet tech startup is getting a jolt of new energy from one of the nation’s top accelerator programs. The timing couldn’t be better, said founder Jonaie Johnson, announcing Interplay’s acceptance into Techstars Atlanta & New Orleans Powered by J.P. Morgan, which welcomed…