Cigna's Evernorth has completed its acquisition of virtual care provider MDLive.
Cigna first announced the deal in late February, with the expectation it would close in the second quarter. The deal, the insurer said, will enhance the Evernorth subsidiary's efforts to lower healthcare costs.
MDLive's platform will be part of an end-to-end solution that's meant to harness virtual options to change the way patients interact with the healthcare system as well as their providers, Evernorth said.
“By bringing MDLIVE into Evernorth, we have a highly complementary platform that will rapidly expand our capabilities to deliver greater affordability, predictability and simplicity for our customers and clients,” said Eric Palmer, president and chief operating officer of Evernorth, in a statement. “Evernorth is uniquely positioned to bring new, differentiated and future-state care solutions that substantially lower medical costs and improve the overall health care experience.”
COVID-19 has significantly increased the in interest virtual care and telehealth, and money is pouring into the industry. Evernorth said 75% of Americans see the future of healthcare as being in the home.
MDLive has brought in $174 million in funding since its 2009 launch, and Cigna's venture capital arm Cigna Ventures has been a leading investor.
Financial terms of the acquisition were not disclosed. BofA Securities acted as financial adviser to MDLive, and Davis Polk & Wardwell served as legal counsel for the telehealth company. Greenhill & Co. LLC served as financial adviser to Cigna, with Wachtell Lipton Rosen & Katz serving as legal counsel and Sheppard, Mullin, Richter & Hampton as regulatory counsel.
“MDLIVE and Evernorth share a common vision and passion for changing health care for the better,” said Charles Jones, chairman and CEO of MDLive, in a statement. “Together, we can accelerate the delivery of new virtual care capabilities in a way that will optimize the care journey for our clients and customers.”