At-home health testing startup Everlywell has acquired PWNHealth and Home Access Health and rebranded the parent company as Everly Health.
PWNHealth and Home Access Health offer self-collected lab testing services. The new company, Everly Health, will support more than 20 million people in all 50 U.S. states, Canada and Puerto Rico, according to a company statement.
Everlywell previously had a partnership with PWNHealth, which operates a clinician network for diagnostic testing. The company provided clinical oversight and telehealth services for Everlywell.
PWNHealth will be rebranded as Everly Health Solutions and will operate as an independent subsidiary of Everly Health, the company said.
Terms of the deal were not disclosed. Bloomberg reported that Everlywell is valued at $2.9 billion after the acquisition, according to people familiar with the matter.
The Austin, Texas-based digital health company is in the midst of a major growth spurt. Everlywell, which started up in 2015, has grown to offer more than 35 at-home lab testing kits for food sensitivity, fertility, STDs, thyroid function, metabolism, vitamin D and inflammation. The testing kits are sold online as well as at retailers CVS and Target.
In May 2020, the company received authorization from the Food and Drug Administration (FDA) for a mail-in COVID-19 test and also received DTC or "direct to consumer" authorization from the FDA for its COVID-19 test home collection kit.
In September, Andy Page—former president at 23andMe and Livongo—joined the company as its first president.
The startup saw strong growth during the COVID-19 pandemic, with revenue growing 300% in the last year, the company said.
Everlywell's growth points to the rising tide of consumer demand for accessible, affordable testing long after doctors' offices and clinics have largely resumed normal services, company executives said.
"The pandemic significantly accelerated the growth of consumer-friendly lab testing within the $85 billion testing market, resulting in a watershed moment for all aspects of diagnostics. People now expect affordable, high-quality, and easy diagnostic testing more than ever before," said Julia Cheek, CEO and founder of Everlywell and Everly Health, in a statement.
"From technology to testing to treatment, Everly Health will transform lives with modern, diagnostics-driven care. Our priority is creating a world-class experience that enables our partners to deliver better care with ease," Cheek said.
In December, the startup banked a $175 million series D round that included funds from investors including BlackRock, The Chernin Group, Foresite Capital, Greenspring Associates, Lux Capital, Morningside Ventures and others. The company has raised $325 million to date, according to Crunchbase.
Everly Health now employs nearly 500 people and has an extensive telehealth network covering all 50 states. The company has over 350 clients, including many of the largest health plans, employers and labs in the U.S.
Cheek will serve as the CEO of Everly Health, and PWNHealth's CEO Sanjay Pingle will serve in a transitional role to support the integration and also join the board of Everly Health. PWNHealth investors Spectrum Equity, a leading growth equity firm, and the Blue Venture Fund, a Blue Cross and Blue Shield corporate venture fund program, will continue to have an ownership position in Everly Health.