Scoop: Virtual care startup Wheel buys GoodRx tech for $20M
GoodRx on Thursday filed paperwork with the SEC for Wheel to acquire GoodRx Care's virtual care tech backbone for $19.5 million in cash, Wheel CEO Michelle Davey confirmed to Axios.
Why it matters: As unsexy as it might sound, digital health infrastructure is rapidly emerging as one of the sector's hottest bets, as virtual-first care companies proliferate and scale.
Deal details: Under the terms of the licensing agreement, Wheel gets access to GoodRx's tools for clinical management, patient engagement and medical records.
- GoodRx will continue to own the consumer-facing GoodRx Care website and mobile app, per the filing.
- GoodRx will continue to use the tech to provide telehealth to its users with Wheel’s tech and staffing services.
- The sale is expected to close by the end of the month.
Context: The deal comes as health tech enjoys its Shopify moment, with a flurry of startups vying to supply the technological backbone for health care companies. For example:
- Primary care software company Hint Health earlier this month acquired health record company AeroDPC in a cash and equity deal.
- Capable Health, a maker of plug-and-play enablement tools for digital health startups, in May raised $6 million in seed funds.
- Primary care-focused tech developer Fold Health in July collected $6 million in seed capital from former Athenahealth CEO Jonathan Bush and others
Catch up quick: Since 2020, Wheel has partnered with GoodRx by providing the company with its nationwide network of clinicians.
- Davey tells Axios that its clinicians' positive experience with GoodRx's electronic medical record (EMR) tools heavily influenced the decision.
- "We’ve seen a lot of EMRs — and what GoodRx has built is the best one out there, by leaps and bounds," says Davey.
What they're saying: Davey says the deal comes as health tech faces "a major inflection point" and will allow Wheel to scale more broadly across the heath care ecosystem, including urgent care centers and more traditional health care providers.
- "This acquisition speeds up our ability to provide our customers with more capabilities and support more care models," Davey says.