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
Proof is in the spending: CEO-to-CEO Challenge yields results in diversifying supply chains
Editor’s note: The following story was sponsored by KC Rising, a regional initiative to help Kansas City grow faster and more intentionally, as part of a campaign to promote its CEO-to-CEO Challenge on supplier diversity. When she started researching the institutional knowledge at MMC Corp. about working with diverse suppliers, national purchasing director Kelli Fraas found the process was…
Her new role is reenvisioning one of KC’s most iconic events for entrepreneurs; how Callie England is shaking up GEW
Callie England misses the life of an entrepreneur, she shared, but her new role with the UMKC Innovation Center — and GEWKC — allows her to stay in the game without being on the field. As of January, the veteran Kansas City startup founder is responsible for managing the branding and marketing initiatives of the…
Sand volleyball tourney for early-career professions works to ‘Spike the Stigma’ on mental health
Joining the workforce is no walk on the beach, said Mark Potts, but give him and his teammates a few hours in the sun and sand on a Saturday afternoon and it could be. “Nobody is on their journey alone,” said Potts, president of the Go Further Foundation, explaining the organization’s purpose and its goal…
Sailes closes $5.1M investment round led by STL firm, with KCRise Fund, Wichita VC
The foundation for Sailes has always been solving difficult problems for sales teams, said Nick Smith; the success of a Series A funding round for the startup will power new tools toward that goal. “Everyone is on this AI hype train, and we’ve been for AI for a while. But it’s not just about using…