Ta McKesson Corporation agreed to buy prescription Rx Savings Solutions from Overland Park in a deal worth nearly $1 billion.
McKesson announced Monday that it had reached a settlement with the prescription-price startup valued at up to $875 million, more than double the $425 million price that Kansas City-built Backlot Cars came out for in 2020, making the sale the largest start-up exit in subway history.
“By joining McKesson, we will be able to offer an exceptionally broad set of services to our customers and strengthen our leadership in prescription drug price transparency,” said Michael Rea, Founder and CEO.
“This is a critical part of our growth journey and we are excited about what the future holds for Rx Savings Solutions as part of McKesson.”
The deal guarantees RxSS an initial payment of $600 million and additional funds of up to $275 million depending on its financial performance through 2025, the companies said in a statement.
McKesson said the acquisition is in line with its strategic growth plans, successfully connecting the biopharmaceutical space with payment services.
“Rx Savings Solutions offerings for employers and patients will strengthen McKesson’s ability to help solve the most common drug challenges related to access, affordability and adherence,” said Brian Tyler, CEO.
“We expect the acquisition of Rx Savings Solutions to accelerate McKesson’s growth priority in biopharmaceutical services by expanding our ecosystem of differentiated drug access solutions for patients. Together with Rx Savings Solutions, McKesson will expand our efforts to improve health outcomes for all.”
RX Savings Solutions will become part of the company’s prescription technology solutions business. The combined organization hopes to bring new capabilities for employers and patients to McKesson’s portfolio of pharmacy, provider, payer and biopharma services.
Founded in 2012, RX Savings Solutions contracts with self-funded health plans and employers in an effort to maximize the effectiveness of benefit design to reduce prescription cost savings for members.
To date, the company has raised over $22 million and is ranked number three among the most recent by Startland News. Kansas City Venture Capital Backed Companies Report.