Vera Acquires Castlight for $370M

Healthcare’s long march towards value-based care recently took another step forward with the announcement that Vera Whole Health is acquiring care navigation company Castlight Health for approximately $370M.

Vera will acquire all outstanding shares of Castlight for $2.05 per share (a 25% premium), which will be welcome news for recent investors but do little to ease the losses of those that picked up shares for nearly $40 following Castlight’s 2014 IPO. 

  • Castlight’s digital platform combines health benefits and care navigation to help employers and health plans make better decisions surrounding plan design, while also enabling members to easily connect with “the right care at the right time.”
  • Vera’s model centers around whole-person care through its network of primary care providers and clinics. The company operates entirely at risk, allowing it to retain any savings from care management after a flat per-member, per-month rate for customers.
  • The combined company aims to scale value-based care in the employer market by integrating Castlight’s navigation platform with Vera’s clinical network, while also allowing employers to participate in full risk-sharing for their commercial populations.

The Takeaway

Merging value-based primary care with navigation has been a go-to strategy for providers looking to offer more personalized care while simultaneously controlling expenses. We saw a similar move with the merger of Doctor on Demand and Grand Rounds early last year, and Vera’s acquisition of Castlight could be a sign of more consolidation to come in 2022.

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-- The Digital Health Wire team