Transcarent CEO Glen Tullman spent much of 2024 hinting that his health benefits upstart might be shopping around for acquisitions, and just over a week into the new year, he’s making good on it: Transcarent on Wednesday announced it will buy Accolade, another benefits company, for $621 million — more than double Accolade’s value on the stock market the day before.
Transcarent raised $126 million in 2024, and the cash acquisition is being funded by General Catalyst and Tullman’s 62 Ventures. Accolade shareholders will receive $7.03 per share, a 110% premium over the stock’s Tuesday closing price of $3.35. The deal is expected to close in the second quarter of the year.
Tullman told STAT he felt that the stock market has punished companies like Accolade unfairly and that looking at the premium paid wasn’t the right metric to evaluate the strength of the deal. Still, he said, “I think it does demonstrate how valuable we think this company is.”
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