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
From childhood friend to Chief’s personal chef: ‘Whatever he’s feeding me is keeping me young,’ says Travis Kelce
Kumar Ferguson has a meaty behind-the-scenes role in the Kansas City Chiefs coming season: fueling professional athletes, the personal chef to Travis Kelce shared. Since 2016, Ferguson’s full-time job is to worry about what’s for dinner, so Kansas City Chiefs tight end Kelce doesn’t have to. He prepares three fresh meals a day, so his…
TokenTourney brings daily fantasy sports to the casual fan, fielding a video game feel with real-world experiences
In April, Davis Engle asked his lifelong friend to quit his job in Dallas and come take a gamble on his startup. For Sam Shortall, it was an easy decision. “It didn’t take long for me to weigh the pros and cons of leaving consulting and doing something revolutionary,” Shortall said. The two have known…
Access all in one room: KC Black Owned bringing Black business summit to KC Convention Center
It’s easy to get caught up in the daily hustle and forget to step back and reflect when building a business, said Chelsey M., announcing a fall summit meant to help minority entrepreneurs strategically gain insights, network, and plan for growth and success. The Infinity & Beyond Black Business Summit — set for Oct. 7 at…
Investment from former Chiefs linebacker expected to boost Kin Seltzer’s flow into KC
An investment from former Chiefs player Dezman Moses valued at $3 million is expected to help flood Kansas City with storytelling — and a new surprise flavor — from the first Black-owned seltzer in the market, said Joshua Lewis. Kin Seltzer announced the strategic investment from the Kansas City linebacker-turned-entrepreneur, noting plans to use the…