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
$11M renovation in the works for historic hub of Black entrepreneurship; project ties into 18th Street pedestrian mall plans
Editor’s note: The following story was originally published by AltCap, an ally to underestimated entrepreneurs that offers financing to businesses and communities that traditional lenders do not serve. For more than one hundred years, the Lincoln Building has served as a cornerstone of commerce and community in the 18th and Vine district. The historic district —…
MTC’s spring $1.4M investment cycle loops Facility Ally, DevStride into equity deals
Two Kansas City startups are among a handful of Missouri companies receiving a collective $1.4 million in investment allocations through a state-sponsored venture capital program. Facility Ally, led by serial entrepreneur Luke Wade; and DevStride, co-founded by Phil Reynolds, Chastin Reynolds, Aaron Saloff and Kujtim Hoxha; must now complete the Missouri Technology Corporation’s due diligence process…
Kauffman CEO: Foundation’s reset aligns Mr. K’s intent with KC’s needs of the moment
A recently announced strategy refresh for the Ewing Marion Kauffman Foundation will drive the organization’s collective impact in the community — honoring the vision of its namesake while recognizing the challenges Kansas City faces today, said Dr. DeAngela Burns-Wallace. “Mr. K had very distinct philosophies and ideas around how he wanted this work done,” explained…
Block by block: Prototype builds startup’s housing vision where everyone can afford their own castle
A mock home facade project on the grounds of Kansas City’s historic Workhouse Castle serves as a proof point for Godfrey Riddle’s rebooted Civic Saint — a social venture built on compressed earth blocks as its key to affordable, sustainable housing. “CEBs (compressed earth blocks) are great for Kansas City, because non-expansive sandy clay soil…