Everlywell, a digital health company that sells certified lab test kits online, acquired PWNHealth (a clinician network for diagnostic testing) and its subsidiary Home Access Health to form a new parent company called Everly Health.
The financial terms of the acquisition were not disclosed.
Everlywell is now valued at $2.9 billion after acquiring PWNHealth and its subsidiary, according to Bloomberg Quint. In December, EverlyWell announced an oversubscribed Series D financing of $175 million. Everlywell has raised more than $250 million in venture funding to date.
Everlywell’s investors include The Chernin Group (TCG), Foresite Capital, Greenspring Associates, Lux Capital, Morningside Ventures, Portfolia, Goodwater Capital, Highland Capital Partners, and Next Coast Ventures.
Special purpose acquisition companies (SPACs) have approached Everlywell about going public through a merger, but for now, most focus is on integrating the newly acquired business, said Everlywell Founder and Chief Executive Officer Julia Cheek.
Everlywell offers a suite of validated lab tests, including Cholesterol, Heart Health, Fertility, STIs, Lyme Disease, Testosterone, Thyroid, and more. The company also provides access to at-home sample collection lab tests for fertility, high-risk HPV, and indoor & outdoor allergies. The at-home, medical-grade tests start at $49 and are generally covered by Flexible Spending and Health Savings Accounts.
In a press statement, Everlywell said: PWNHealth will be rebranded as Everly Health Solutions and will operate as an independent subsidiary of Everly Health. Everly Health Solutions will maintain complete data independence from Everlywell.
PWNHealth and Home Access Health both offer self-collected lab test services. According to the press announcement, by combining these companies, Everly Health will support more than 20 million people annually in all 50 U.S. states, Canada, and Puerto Rico.
PWNHealth, which operates a national telehealth network is also a provider of diagnostic testing solutions, has been Everlywell’s partner for clinical oversight and telehealth since the company launched to consumers in 2016.
“Better care leads to better outcomes,” said Sanjay Pingle, board member of Everly Health and outgoing CEO of PWNHealth.
Sanjay Pingle added: “Through our history, we’ve only chosen to work with partners who uphold exceptionally high standards for clinical quality and rigor because that’s what the individuals in our care trust us to provide. As part of Everly Health, PWNHealth will be able to deliver even more value to our community of industry-leading partners as we offer them new ways to provide better experiences for the people they serve.”
J.P. Morgan Securities served as financial advisor to Everlywell, and Evercore served as financial advisor to PWNHealth. Wilson Sonsini Goodrich & Rosati and Hyman, Phelps & McNamara served as legal advisors to Everlywell. Choate, Hall and Stewart, and Jones Day served as legal advisors to PWNHealth.
A total of 184 digital health companies were acquired in 2020, compared to 169 in 2019, according to Mercom’s Q4 and 2020 Digital Health Funding and M&A Report. Learn more about M&A activity in the digital health sector.
