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
Her red sauce is dynamite but Ragazza’s owner gives the chef title to her Italian heritage
Family is baked into the core of Laura Norris’ restaurants, she shared, from the Italian recipes served at Ragazza in Westport to the brother-sister duo running the new Enzo Wine Bar and Bistro together in the River Market. She opened Ragazza, which now sits at the corner of 43rd and Main streets, in 2013 and…
How a ‘City Hall Swiftie committee’ is bringing joy (and business) to NKC as concert tour hits Arrowhead
The street lights are pointing in an arrowhead, leading Taylor Swift fans to North Kansas City where they can walk the iconic “Cornelia Street.” In June, North Kansas City Mayor Bryant DeLong announced that Swift Street in NKC was to be temporarily renamed Swift Street (Taylor’s Version) in honor of the artist coming July 7-8…
Former Independence mayor named interim executive director for LGBT Chamber
An interim leader was announced Thursday as the Mid-America LGBT Chamber of Commerce forms a search committee tasked with identifying the next full-time executive director for the Kansas City-based business advocacy group. Eileen Weir, who served as mayor of Independence, Missouri, from 2014 to 2022, takes on the interim role July 11 after the announcement…
Fund Me, KC: Grocery store on Troost needs to bag community support to open, bringing fresh food east
Startland News is continuing its “Fund Me, KC” series to highlight area entrepreneurs’ efforts to accelerate their businesses or lend a helping hand to others. This is an opportunity for business owners and innovators — like Kortney Lee who is attempting to expand the footprint of Community Groceries — to share their crowdfunding stories and potentially…