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 this reality TV show helps competing entrepreneurs find their people — not just adversaries
It’s five days, 14-hour workdays, and one intense experience aimed at helping entrepreneurs sharpen their businesses. The setup for The Blox — a startup-focused reality TV competition and bootcamp — is crafted to immerse builders in the rigors of real-world business, said Weston Bergmann. Season 17 of the live-in competition show launched in June, emphasizing…
C2FO named top fintech by CNBC; leaders celebrate win, pushing toward $500B funding milestone
A Kansas City fintech’s award-winning efforts to boost working capital access for businesses across the globe not only has built trust among the world’s top enterprises, said Sandy Kemper; it’s positioned C2FO for even greater impact as it transforms the financing landscape for previously overlooked ventures. The company was honored this month as one of…
Bar K dog bar closes all locations, calling out KC riverfront construction, rising inflation
Owners of the award-winning Bar K dog bar — a popular destination for four-legged Kansas Citians and their friends — announced its closure Tuesday, after nearly a decade in business that saw the concept expand to St. Louis and Oklahoma City before suddenly shuttering all operations. “We are heartbroken to announce that Bar K will be…
Months after taking over century-old tailor shop, owner putts his new golf apparel brand in play
Even when an entrepreneur hyper-obsesses over the details, Michael Jerwick learned, opportunity isn’t always tailor-fit to the most conveniently designed timing. The Slabotsky’s owner just transplanted his century-spanning family business to River Market — a mere week before launching a brand new apparel side project. Two of the biggest moves of his career, Jerwick had…