Change Healthcare buys pharmacy IT firm for $200M

Change Healthcare continues to build up its pharmacy technology business with the acquisition of PDX.

Fort Worth, Texas-based PDX, which was founded in 1985, offers fully-integrated retail, specialty, and outpatient pharmacy solutions, including services that range from data analytics to revenue cycle management. 

The Nashville-based technology company acquired PDX for $208 million, according to a filing with U.S. Securities and Exchange Commission.

The acquisition, announced Monday, comes on the heels of Change Healthcare's deal last month to buy e-prescribing company eRx Network for nearly $213 million.

The latest transition demonstrates the company’s continued investment in core aspects of the business to fuel innovation and long-term growth, according to a press release.

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Sixty pharmacy chains—including drug stores, supermarkets, and mass merchants—and more than 350 independent pharmacies in the United States, representing 10,000 individual pharmacies use PDX's technology, according to the company.

"The combination of Change Healthcare, eRx Network, and PDX will result in faster, more integrated development and cross-selling opportunities for Change Healthcare’s combined portfolio of pharmacy network, software, and analytics solutions," the company said.

“For over 30 years, PDX has played a critical role in helping pharmacies streamline operations and leverage automation and business intelligence––essential elements in an increasingly competitive retail pharmacy landscape,” said Neil de Crescenzo, president and CEO of Change Healthcare.

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The company now has a broad portfolio of offerings for pharmacies, an expanded customer base with significant growth opportunities, and the potential to enter new markets, de Crescenzo said.

The acquisition includes the National Health Information Network and Freedom Data Systems companies.

eRx runs a network that connects about 59,000 pharmacies and processes more than 1.5 billion claims transactions a year. eRx also handles 520 million e-prescribing transactions a month. The business also markets insurance verification, e-prescribing, and claims billing services.

Change Healthcare went public in June 2019. The company brought in $3 billion in revenue in 2018.