US healthcare company McKesson has agreed to acquire Francisco Partners’ portfolio company CoverMyMeds for around $1.1bn.
Established in 2008, CoverMyMeds is the health care technology firm that offers electronic prior authorization (ePA) solutions for its customers in the US.
The company's software suite is said to automate the medication prior authorization process for around 500 electronic health records (EHR) systems, 47,000 pharmacies and 700,000 providers, as well as health plans and pharmacy benefit managers (PBMs).
Once the deal concludes, CoverMyMeds will run as an independent business unit under the existing leadership.
McKesson and CoverMyMeds will operate as separate entities, until the close of the transaction.
McKesson chairman and CEO John Hammergren said: “Our announced acquisition of CoverMyMeds supports McKesson’s commitment to provide a comprehensive set of services and solutions that drive value across the healthcare continuum and secure patients’ access to their prescribed drugs.
“McKesson continues to further enhance its diverse suite of pharmaceutical technology solutions to support the very best in patient care.”
Francisco Partners partner Chris Adams said: “CoverMyMeds solves a real pain point for doctors, pharmacies, manufacturers and payers. We are thrilled to have helped the CoverMyMeds team build their business.”
McKesson provides healthcare and information technology services to the payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others.
Image: McKesson's global headquarters building in downtown San Francisco.. Photo: courtesy of Eric Hunt.