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
How one KC startup studio helps feel-good ventures grow impact while actually making money
Running a social venture comes with an inherent challenge for founders, shared Jacqueline Erickson Russell, emphasizing they must balance purpose and profit. Social Venture Studio — powered by LaunchKC — offers support along that journey, added Erickson Russell, the founder and CEO of Social Impact Advising Group and consultant for the Kansas City-based program. “Complex…
This hard swap plays easy: How one KC producer juggles community, breaking the club music cookie cutter
Tyler Jordan’s new spin on DJing: amplify fellow artists and unite people through music, he shared. Jordan — who produces electronic music and DJs under the name Oblivinatti (a mashup of his favorite video game growing up, The Elder Scrolls: Oblivion, and his interest in conspiracy theories) — is evolving his sound production business Vibration…
Art and technology too often butt heads, festival planners say; River Market event paints a reality where they coexist
The River Market Art Festival is back after a 20-year hiatus — with a nod to the past and an eye toward the future, shared The AI Hub’s Taylor Burris and James Spikes, startup founders who are hosting the event in partnership with the River Market Community Association. The revival of the art festival —…
PayIt co-founder: No one-size-fits-all formula for scaling one of KC biggest startup ideas
Mike Plunkett’s journey with PayIt came to an early, but critical crossroads when a wealthy entrepreneur offered half-million dollars to support the Kansas City-built govtech venture, he recalled. The catch: this investor insisted on imposing control and veto power as they committed more funds. Despite being low on funds, the PayIt team — led by…