RTTNews | Apr 23, 2021 08:01AM EDT

08:00 Friday, April 23, 2021 (RTTNews.com) - Health benefits platform Accolade, Inc. (ACCD) today announced its decision to acquire PlushCare, virtual primary care and mental health treatment provider, in a cash-and-stock deal valued up to $450 million.

The acquisition is expected to help Accolade to provide primary care and mental health consultations to its members, the company said.

Steve Barnes, chief financial officer, Accolade, commented, "The addition of PlushCare will expand our addressable market nearly five-fold to more than $200 billion and create new opportunities for long term revenue growth. We plan to invest in integration between our companies to maximize the value of our combined offerings, extend PlushCare's offerings into Accolade's traditional enterprise customer base, and continue to grow PlushCare's core consumer membership."

As per the deal, the purchase price of up to $450 million includes $40 million in cash, $340 million in Accolade common stock, and up to $70 million, payable upon achieving certain revenue milestones, upon closing.

PlushCare had reported revenues of about $35 million in the year ended December 31, 2020.

The latest deal follows Accolade's acquisition of telemedicine company, 2nd.MD, for $460 million in March.

The transaction is expected to close in early June.

Read the original article on RTTNews ( https://www.rttnews.com/3187678/accolade-to-buy-plushcare-for-up-to-450-mln-in-cash-and-stock.aspx)

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