Commure, a technology provider for healthcare systems, has signed a definitive agreement to acquire Augmedix, a company specialising in ambient AI medical documentation and data solutions.
The acquisition is valued at around $139m and will see Commure acquire all outstanding shares of Augmedix common stock.
It will result in Augmedix becoming a wholly owned Commure subsidiary.
The all-cash transaction will offer Augmedix stockholders $2.35 per share, a 169% premium over the 30-day volume weighted average price ended 18 July 2024.
Completion of the transaction is now subject to receipt of pending Augmedix stockholder approval and other customary conditions.
The deal, which has been approved unanimously by Augmedix’s board of directors, is expected to close between late third quarter (Q3) and early fourth quarter (Q4) this year.
Once the acquisition is complete, Augmedix will delist from public markets and operate as a private entity.
The funding for this transaction will come from Commure's existing cash reserves and liquidity options.
Augmedix, recognised for its work in ambient AI-powered medical scribing, currently serves more than 20 health systems and numerous care sites.
Commure said that the latest acquisition is set to enhance the productivity of physicians across the US by utilising AI to transcribe and autonomously code appointments, as well as optimise billing operations.
Together, Commure and Augmedix aim to facilitate over three million AI-assisted physician appointments this year.
Their technologies, Commure Scribe and Augmedix Go, are reported to save physicians an average of two hours of documentation time a day, significantly reducing the documentation burden by over 80%.
Augmedix CEO Manny Krakaris said: “As part of Commure, we believe Augmedix will be well-positioned to scale ambient documentation solutions to even more clinicians and health systems while simultaneously accelerating efforts to infuse more innovative features, integrations, and AI capabilities into our product suite.”
Further announcements on the integration of their product suites are expected in the coming months.
Evercore is acting as the exclusive financial adviser to Augmedix, with Morrison Foerster providing legal counsel.
Morgan Stanley & Co is advising Commure, with Kirkland & Ellis as its legal adviser.
