Health Catalyst, a company offering data and analytics technology for healthcare organisations, has announced the completion of its acquisition of Lumeon, a company specialising in digital health solutions.
The transaction, which includes a mix of stock and cash, is valued at an initial consideration of approximately $37.5m in cash and $2.5m in common stock, with an additional potential earn-out of up to $25m, based on recurring revenue.
The details of the acquisition were disclosed in Health Catalyst's Quarterly Report on Form 10-Q for the quarter ending 30 June 2024, filed with the SEC on 7 August 2024.
Health Catalyst is currently assessing the value of the assets and liabilities acquired from Lumeon and plans to reveal preliminary purchase price allocation estimates in its next quarterly report for the period ending 30 September 2024.
Lumeon has operations in both the US and the UK and provides technology that is designed to streamline care coordination processes.
Its Care Orchestration platform aims to reduce costs, optimise time for clinicians and staff, increase revenue, and enhance quality and patient safety.
By integrating with Health Catalyst, the goal is to enhance Lumeon's platform with analytics and artificial intelligence (AI), as well as the data processing capabilities of Health Catalyst Ignite.
This strategic move is expected to strengthen Health Catalyst's focus on clinical improvement and ambulatory operations while also supporting its existing and future tech-enabled managed services partnerships.
Lumeon CEO Robbie Hughes said: “By combining Health Catalyst Ignite AI platform with our Care Orchestration technology, we will enable healthcare organisations to not only access data-driven insights at scale but now also automate clinical actions needed to ensure those insights are translated into personalised care processes for patients and care teams, closing loop for data-driven transformation and accelerating our shared flywheel further and faster than ever before.”
In addition, Health Catalyst anticipates that Lumeon's UK presence will serve as an opportunity to expand more effectively in the region and potentially in other international markets.
Health Catalyst CEO Dan Burton said: “Effective care management is an essential part of a patient's clinical care journey, and addition of Lumeon's Care Orchestration to Health Catalyst's existing technology and services offering will further enhance analytics insights made available to providers seeking to transform clinical care.”
