Avizia, the fast growing Reston, Va.-based telemedicine startup, is being acquired by American Well, one of the largest telehealth companies in the U.S., the two groups announced today at the American Telemedicine Association meeting in Chicago.
Boston-based American Well plans to complete the acquisition by the end of the second quarter, and financial terms of the deal were not disclosed. However, The Washington Business Journal reports that the sale was for close to $150 million and stock. To date, Avizia has raised $23.7 million in funding, according to Crunchbase. And in October, Avizia acquired Seattle-based competitor Carena in a deal that doubled its size and increased the number of health systems on its platform from 35 to 70.
"Avizia has always sought to help providers be confident they're giving patients the best access to the best care, regardless of location," said Mike Baird, CEO of Avizia, in a statement. "As part of American Well, we can expand this vision."
Founded in 2013, Avizia spun out of Cisco Systems and counts HealthQuest, Northwell Health and NewYork-Presbyterian Hospital as some of its investors. Avizia's technology provides care for a number of health issues, including behavioral health, chronic care, stroke, pediatrics and urgent care at over 70 health systems. In one use case, NewYork-Presbyterian used Avizia for its consumer virtual care program where health specialists at a larger hospital could consult digitally with doctors at smaller hospitals.
Now, with the combined offering, American Well can expand its telemedicine offerings beyond treating routine maladies like pink eye or the common cold. According to a press release, the combined companies will serve millions of patients in home and hospital settings.
An American Well spokesperson said that more details, including who will be heading up the combined company, will be available at a later date.
"American Well helps providers treat patients who are not in the room," said Ido Schoenberg, American Well's chairman and CEO, in a statement. "We share Avizia's passion and relentless commitment to enabling better care anywhere."
