It's hard not to face the end of the year without being a bit reflective.
We’re doing just that with our “End of Year” series (Part one covered our "Office Envy" pieces from 2017, and you can read that here.). In this second installment, we wanted to take a look back at some of this year's biggest tech and startup headlines in the state, and what they mean looking ahead.
It’s Official: CVS Will Buy Aetna for $69B
In what is being reported as the “largest health insurance deal in history,” Woonsocket-based CVS Health announced it will buy health insurance giant Aetna for $69 billion.
The decision comes a little over a month after rumors began circulating that the pharmacy company was interested in Aetna for $66 billion.
What does it mean for Rhode Island?
Shannon Shallcross, CEO and co-founder of East Greenwich-based BetaXAnalytics, a company that uses data to assist employers, providers and payers make better decisions about their health services, also weighed in on the move in an email to Rhode Island Inno.
“The company has expressed the desire for this move to improve the integration of patient care, and to provide higher quality care at a lower cost in ‘communities, homes and through the use of digital tools to support health,'” she said. “Merlo communicated the desire to put customers ‘at the center of health care delivery.’ The intent would be to leverage CVS’s 9,700+ retail stores and 1,100 Minute Clinics to create community-based centers that include resources for wellness, medical, pharmacy, vision, hearing and nutrition services. And the touted benefit of acquiring Aetna is that integrated care and higher negotiation power for pharmaceutical drugs is the key to lowering costs.”
She added that while the deal is projected for the second half of 2018, it’s unknown if the move will have to contend with anti-trust opposition.
Read the full story here.
What Do Hasbro’s Rumored Talks to Acquire Mattel Mean for RI?
Pawtucket-based toy company Hasbro is in talks to purchase rival toy company Mattel, The Wall Street Journal reported on Nov. 10.
The WSJ adds that the talks surrounding the deal were private, so they could not speculate on its terms or how far discussions had gone — or if they would result in an acquisition at all, an additional New York Times report states.
Hasbro is known for lines like Transformers, My Little Pony and movie tie-in products, for franchises like “Star Wars,” Marvel and the Disney Princesses. Some of Mattel’s most popular offerings include Barbie, Hot Wheels, Mr. Potato Head and American Girl.
While neither company has made a statement on the rumors, analysts have tried to fill the silence with reasonings of their own.
Read the full story here.
Infosys Coming to RI with 500 Jobs
Gov. Gina Raimondo announced that consulting and technology company Infosys has entered into a “multi-year partnership” with Rhode Island to bring 500 jobs to the state over the next five years as part of its new Infosys Design and Innovation Hub.
“We are excited to welcome Infosys to Rhode Island,” Raimondo said in an Infosys press release. “Because of our investments in higher education and job training at [Community College Rhode Island] and other institutions across the state, Rhode Islanders are well-equipped and well-prepared to compete for these good paying jobs. Infosys joins a growing local market of innovative, advanced industry companies that have chosen to plant a flag in Rhode Island.”
The move is part of Infosys’ push to increase its American-based workforce by 10,000 in the next two years.
“The state’s educational institutions, design-rich environment, and economic development tools, positioned Rhode Island competitively for this type of specialist partnership," said Infosys President Ravi Kumar.
He added that Infosys’ in-state access these resources will be integral to the company’s future innovative efforts.
These R.I. Companies Have Won Innovation Vouchers in 2017 (Parts One and Two)
Facilitated by the Rhode Island Commerce Corporation, the Innovation Voucher program was created to increase research and development work in the Ocean State.
In its second year, the program provides enterprises employing less than 500 workers with grants of up to $50,000, to fund said research and development work with a Rhode Island research facility, university or medical center.
“Our Innovation Grants give startups the spark they need to turn their ideas into businesses,” Governor Gina Raimondo has said of the program. “Our state is on the move.”
These stories feature the companies (many of which where featured by Rhode Island Inno) that received these funds, and highlight the ways those enterprises plan to use them to drive change for the better in the Rhode Island ecosystem.
Read Part One here. Read part two here.
Undisclosed Investment From Vista Could Help Upserve Hit 9-Figure Revenue
Lucia Maffei of BostInno covered the fact that the top-funded startup in Rhode Island, Upserve, received an undisclosed investment from Vista Equity Partners. The restaurant analytics software company had already raised $40.5 million in capital from other sources, including LinkedIn co-founder Reid Hoffman.
The CEO of Upserve, Angus Davis, declined to share specifics of the Vista Equity Partners investment. “We thought it’s more relevant to talk about the specifics of our customer growth,” Davis said, later adding that the Upserve’s platform includes more than $11 billion in annual transaction volume.
Read the whole story here.
Wexford Innovation Complex Groundbreaking
Sept. 25 marked the official groundbreaking of the future site of the Wexford Innovation Complex on former I-195 land, amid what is being called the Innovation and Design District in Providence.
The Complex will hold the Cambridge Innovation Center, Brown University’s School of Professional Studies, and Johnson & Johnson offices in the forthcoming 195,000 sq.-ft. building, set for completion in two years, a press release from Gov. Gina Raimondo‘s site reads.
“For too long, the I-195 land was nothing but dirt,” Raimondo said. “Today marks the start of something transformational, not just for this land, but for our state and its economy. This complex will become the epicenter of Rhode Island’s resurgence, creating jobs at every rung of the ladder, from janitors to PhD computer scientists.”
Rhode Island Commerce Secretary Stefan Pryor echoed her sentiments. “Wexford’s project has the potential to advance our state’s economy in significant ways — fostering innovation, spurring growth, and building opportunity for all Rhode Islanders,” he said.
Specifically? It’s estimated that over the next 20 years, the WIC will create $100 million for the Ocean State.
Read the whole story here.
Amazon HQ2
Here’s something you do know: Amazon has said that it’s on the hunt for its second North American headquarters, and has invited cities to apply for the honor. As the “winner” could expect an influx of 50,000 new jobs and $5 billion in investment to their city, it’s not exactly shocking that enthusiasm (for applications, think pieces, and theory-swapping alike) has been high.
Here’s something you might not know: Rhode Island is adding itself to the HQ2 mix. “Matt Sheaff, of the state’s economic development agency CommerceRI, said that Rhode Island is in a position to make a competitive application and plans to do so,” the AP reports. Sheaff added in an additional RINPR report that while the approval process won’t be a cake walk, the state has wooed large businesses, like Johnson and Johnson and GE Digital, in the past.
While Rhode Island may not be on the New York Times’ radar (they predict Boston, Denver, Portland, Ore., and D.C. will attract Amazon’s particular attention), it’s on Axios AM: Mike’s Top 10, where in a recent newsletter, the titular Mike (Allen) made the case for Providence.
“Rhode Island Gov. Gina Raimondo would fight for it,” Allen wrote. “Amazon would instantly be synonymous with Providence in a way that it wouldn’t be with other likely picks. And with all of Amazon’s M&A activity, it makes sense to be on the East Coast, with an easy day trip from New York or D.C.”
And considering that a good chunk of the criteria the New York Times laid out in its aforementioned article fits Providence (“the right labor pool is large and growing” and “workers can easily get around — and out of town,” for example), it leads one to believe that maybe Allen, Sheaff, and CommerceRI are on to something. Time will tell.
Read the whole story here.
