Sharecare Acquires CareLinx for $65 Million

Sharecare, a digital wellness platform that advises on health and lifestyle-related matters through a mobile app, announced that it had closed its acquisition of CareLinx, an online platform for booking caregivers. Sharecare has acquired CareLinx from Europ Assistance.

Under the terms of the acquisition agreement, the transaction is valued at ~$65 million, consisting of $54.6 million in cash and $10.4 million in Sharecare common stock.

For the year ended December 31, 2020, CareLinx reported revenue of ~$5 million. CareLinx expects to report revenue of about $20 million for the year ended December 31, 2021, and grow revenue organically by at least 75% in 2022.

“CareLinx has shown impressive organic growth to date, and we believe Sharecare is well-positioned to continue that trajectory. In fact, CareLinx can be sold into all three of our channels, and we already have several of our health plan and provider customers actively looking for this type of solution,” said Justin Ferrero, president and chief financial officer of Sharecare.

Justin Ferrero added: “Ultimately, we believe this acquisition will expand our TAM by over $7 billion for home care and potentially over $100 billion if we expand further into home health.”

CareLinx has a network of more than 450,000 care providers (on its platform) across the U.S. and partners with both health plans and providers. Currently, the company’s platform serves more than 1 million Medicare Advantage members nationwide.

“For the last decade, we have leveraged our platform to help people navigate the challenges of home care, as well as provide healthcare’s scarcest resource – nurses and caregivers – with the ability to earn higher pay and have greater schedule flexibility,” said Sherwin Sheik, founder, and chief executive officer of CareLinx.

Sherwin Sheik added: “Joining the Sharecare family will enable us to scale across their existing client base of health plans and large employers while working with their world-class engineers to drive operational efficiencies, enhance retention and engagement, and ultimately, fully integrate CareLinx’s capabilities and network into the Sharecare platform.”

Based in Atlanta, Georgia, Sharecare’s virtual platform helps people manage all their health needs in one place, streaming the ability to access health records and other information.

King & Spalding served as legal counsel to Sharecare, and K&L Gates served as legal counsel to CareLinx. Oppenheimer & Co. served as financial advisor to CareLinx.

Online healthcare service booking companies raised $334 million in the first half of 2021. Alodokter, an Indonesia-based online doctor’s appointment booking platform, has raised additional funding from MDI Ventures and Samsung Ventures.