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
KC GIFT orders a full meal with $100K Wah Gwan grant: Job creation (with a side of inspiration)
Young people on Kansas City’s east side need to see examples of what can be achieved when someone who looks like them works hard — and wins, said Tanyech Yarbrough, pledging to use her recent grant funding from KC G.I.F.T. to mirror entrepreneurship to her community, as well as expand her Troost eatery. Yarbrough’s Wah…
GEWKC returning to familiar venue (but its new destinations might surprise ticket holders)
When Global Entrepreneurship Week pulls into the station later this fall, Kansas City participants can expect a fresh experience inside one of the region’s most iconic landmarks, said Callie England, noting an intentional effort behind the scenes should help reroute the “best of the best” events onto custom agendas. “While you’ll see a few familiar…
Wichita program drives highway of resources to more KC startups; founders tout who they met along the way
Opening its doors to Midwest companies outside Kansas for the first time, a Wichita-based program that connects startups with the tools to better engage enterprise partners offered an added benefit to Kansas City entrepreneurs: a new ecosystem of support just a few hours from home. “The program’s Wichita location inspired us to broaden our outreach…
Report: Tech drives nearly a 10th of Kansas City’s economy (and those employers are hiring)
Advocates tout KC for top-tier tech talent; a new report affirms its status as an emerging market with potential for big impact A combination of economic stability, depth and skill of talent, and operational efficiency creates conditions for companies to grow and succeed in Kansas City, said Kara Lowe, detailing new data that suggests the…