Last year CareLinx entered a new phase of its business by entering the clinical side of home care. As a result, CareLinx saw strong growth, which in turn made the company more attractive to potential buyers. One of these interested parties has officially campaigned for CareLinx.
On Tuesday, Sharecare (Nasdaq: SHCR) announced the completion of the acquisition of CareLinx. The company acquired CareLinx from Global Fortune 50 company Generali for $ 65 million.
“When I was looking for a home, moving from Generali to a home in the US that could accelerate our growth quickly … there was no better home than Sharecare,” Sherwin Sheik, Founder and CEO of CareLinx, told Home Health Care News .
CareLinx Inc., based in Burlingame, California, originally began as a technology-enabled home care company coordinating non-medical personal care services. Since then, it has evolved to include clinical nursing services in its Nurse OnDemand division.
CareLinx, which has a network of more than 450,000 health care providers in the United States, works with both health insurers and health care providers. The company currently serves over 1 million Medicare Advantage members nationwide.
Sharecare is now a digital health company based in Atlanta, Georgia. The company’s virtual platform helps people manage all of their health needs in one place by providing the ability to access health records and other information.
The company also enables its users to stay informed about their personal health through its full range of services.
“You don’t have a dozen apps to manage your money,” Jeff Arnold, founder, chairman and CEO of Sharecare, told HHCN. “Why should you have a dozen apps to manage your health? Sharecare is the platform company that brings everything together in one place on behalf of our users, usually sponsored by their health insurance company or employer. “
The acquisition has its roots in a longstanding relationship between CareLinx and Sharecare.
“This deal didn’t come about overnight,” said Sheik. “This is a relationship that has developed over four years as our teams have worked together on other occasions … and seen how well the teams do. As we continued that relationship, I kept checking with Jeff and he was always open to updates on what was going on at CareLinx. “
For Sharecare, CareLinx was an attractive acquisition target due to its distinctive business model and platform.
“I’ve always thought of it as almost ‘Match.com meets Uber’ for grooming,” said Arnold. “[Sheik] had developed this great platform that brought families and caregivers together, figured out the logistics, collected the data, delivered the care plan, paid the caregiver faster and could do it on all conditions. “
Recommended HHCN + exclusives
CareLinx’s expansion into clinical care with Nurse OnDemand amid the COVID-19 emergency has only further increased the confidence of the Sharecare leadership team in the company.
Since introducing Nurse OnDemand, CareLinx has gained more than 460 corporate customers.
“CareLinx has shown impressive organic growth to date and we believe Sharecare is well positioned to continue on this path,” said Justin Ferrero, President and CFO of Sharecare, in a statement.
Sharecare determined that the acquisition will add over $ 7 billion to the company’s total available home care market – and potentially over $ 100 billion if it continues to expand into home care.
In the end, the transaction positioned CareLinx to further expand its dynamism and size.
“I firmly believe in their vision of the entire platform,” said Sheik. “I’ve seen which customer network they have and how CareLinx can really fit into all three channels – from companies to providers to consumers.”
Ferrero indicated that several Sharecare health insurance and provider customers were actively looking for the solution offered by the CareLinx business model.
In total, Sharecare has 6,000 healthcare systems and large physician-clinic customers and more than 108 million people in its first-party database, which is aimed directly at consumers.
Overall, Sheik believes CareLinx succeeded because the company’s business model is designed to solve the toughest problem first.
“That is, how do you reliably dispatch non-medical providers to really address the functional needs of patients at home,” he said.
Looking to the future, Medicare Advantage is number one for CareLinx.
“We have seen a significant increase in interest in existing Medicare Advantage plans,” said Sheik. “We are in discussion with several of the largest Medicare Advantage plans for 2022.”
Now that the transaction is officially closed, the two companies look forward to building on their longstanding relationship.
“We’re already working on our first 180 days,” said Arnold. “It doesn’t feel like a new merger because we’re so in sync. I think we will have some really quick wins together. “