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
It’s the ultimate stash: How an exclusive cannabis collaboration is bringing smokeware out of hiding
Working with acclaimed fashion designer Whitney Manney is a bucket list collaboration, shared Wandering Bud founder Riley Brain. The handmade ceramic smokeware maker has teamed up with the KC-based fashion label WHITNEYMANNEY to create a limited edition collection of cannabis accessories and stash bags. “I’ve always just really admired Whitney’s work and aesthetic,” Brain said.…
Just funded: Four new Digital Sandbox KC companies scaling products beyond survival mode
Freshly announced funding from Digital Sandbox KC is expected to help four Kansas City startups scale their innovations to market with additional access to investors, resources and a growing network of fellow entrepreneurs. Among the first-quarter Sandbox recipients, Basehor-based Mpruv Sports plans to use the new backing as it releases a series of peer-to-peer, on-demand,…
UMKC pitch contest returning with $90K in prizes; spots remain for emerging startups
The 2023 edition of the Regnier Venture Creation Challenge (RVCC), an annual pitch competition hosted by UMKC, is expected to award $90,000 in equity-free funding to student entrepreneurs and Kansas City businesses. Ben Williams, managing director at the Regnier Institute for Entrepreneurship and Innovation, shared his excitement for this year’s event — set for April…
He’s building a more welcoming (and eco-friendly) KC, but this entrepreneur’s vision comes with a catch: It isn’t a one-man job
Reda Ibrahim’s home is open to everyone, he shared, especially for those who feel like they don’t belong anywhere. “I have a big magnet toward everyone who doesn’t fit in. I faced a lot of racism; I have faced the struggle to be accepted. [When I came to the United States] seven, eight years ago,…