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Clarify Health, a health data analytics company valued at $1.4 billion in 2022, is pursuing a sale, three sources familiar with the sale process tell Axios Pro. 

Why it matters: The KKR- and Softbank-backed business has seen a steep valuation drop since its Series D three years ago.

Zoom in: Barclays is advising, with interest coming primarily from strategic investors, two sources say. A deal would likely be mostly equity, all sources say. 

By the numbers: Clarify is seeing capital expenditure losses of more than $20 million, and EBITDA losses of around $5 million-plus, per the first and third sources. The losses are in part attributable to how expensive data and talent are, the first source says.

The company has raised about $350 million and is generating about $30 million in annual revenue, the same two sources say.

Between the lines: It's expensive to scale these ventures, and the advent of generative AI has changed the real-world data landscape drastically.

"There's a small universe of buyers out there that would want to take on a project like [Clarify]," the first source tells Axios. "There's a lot of wood to chop to get the synergies."

How it works: Clarify's analytics software pulls patient data from claims, EHRs and prescriptions to offer insights on improving care and cutting costs. 

Its investors include funds managed by BlackRock and Memorial Hermann Health System, Insight Partners, Spark Capital, Rivas Capital, Aspenwood Ventures and Sigmas Group.

 State of play: The bloated valuations of the 2021-2022 era have since settled, and the health tech unicorns from those years haven't seen rich exits.

DispatchHealth, once valued at $1.7 billion, merged with Medically Home in March. Biofourmis, once worth $1.3 billion, merged with CopilotIQ last year. Those deals notably lacked any terms.

Lyra Health and Reify Health were each valued at around $5 billion in 2022. Neither has raised funds since, and Lyra laid off 2% of its workforce amid a restructuring last year.

Hinge Health went public last week at less than half its $6 billion valuation in 2021.

Yes, but: Innovaccer's January Series F reportedly valued it at $3.45 billion — a small uptick from its $3.2 billion valuation in 2021, but meaningful in this market.

Transcarent's Series D last year valued it at $2.1 billion, up from $1.6 billion in 2021 — and the company acquired Accolade for $621 million this year. (Fun fact: Axios asked CEO Glen Tullman back in 2022 if he'd go after Accolade — and he wasn't sold on the company's model.)

The bottom line: There are more losers than winners from the 2021-2022 era bubble — but just how large the losses are remains to be seen. 

Clarify and Softbank did not respond to a request for comment. KKR and Barclays declined to comment. 

Scoop: Clarify Health working with Barclays on sale

The KKR- and Softbank-backed business has seen a steep valuation drop since its Series D three years ago.

Illustration of 1 standing o large stack of money. The 0 is on a smaller stack of money.

Clarify Health, a health data analytics company valued at <a class="gtmContentClick" data-vars-link-text="$1.4 billion" data-vars-click-url="https://www.bloomberg.com/news/articles/2022-04-05/clarify-health-reaches-1-4-billion-value-in-softbank-led-round" data-vars-content-id="5c3b47db-bb9c-4414-8b55-2aff6506a232" data-vars-headline="Scoop: Clarify Health working with Barclays on sale" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.bloomberg.com/news/articles/2022-04-05/clarify-health-reaches-1-4-billion-value-in-softbank-led-round" target="_blank">$1.4 billion</a> in 2022, is pursuing a sale, three sources familiar with the sale process tell Axios Pro. Why it matters: The KKR- and Softbank-backed business has seen a steep valuation drop since its Series D three years ago.

Scoop: Clarify Health working with Barclays on sale

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