Rx Savings Solutions Acquisition, Valuation, Funding & Investors

Rx Savings Solutions was acquired by McKesson for $875M in September 2022.

Rx Savings Solutions acquisition price

$875M

Acquired by McKesson · Sep 2022

Cumulative funding Rx Savings Solutions raised

$21M

across 2 funding rounds

Key investors in Rx Savings Solutions

  • McCarthy Capital

Rx Savings Solutions Overview

About Rx Savings Solutions

Rx Savings Solutions is a prescription cost reduction platform using clinical technology and member support. Founded by a pharmacist and based in Columbus, Ohio, it serves over 9 million members with personalized recommendations and pharmacy navigation assistance for payers and individuals.


Founded

2008

HQ

United StatesKansas City, KS

Status

Acquired

Customer focus

B2B

Revenue model

Subscription

Valuation

$875M (acquired Sep 2022)

Rx Savings Solutions Acquisition

Rx Savings Solutions was acquired by McKesson for $875M on 19 September 2022.

Before the acquisition Rx Savings Solutions had raised $21M across 2 funding rounds.

Rx Savings Solutions acquisition details
AcquirerDateTypePrice
19 Sep 2022Strategic M&A$875M

Rx Savings Solutions Funding History

Rx Savings Solutions has raised a total of $21M across 2 funding rounds.

Rx Savings Solutions' first fundraising round was a $3M Series A in September 2015. The most recent completed round was a $18M Series B in November 2017.

Rx Savings Solutions funding rounds

Rx Savings Solutions funding rounds
DateStageInvestorsRaisedDeal Summary
Nov 2017Series BMcCarthy Capital (lead)$18MRx Savings Solutions is a prescription price transparency and benefit insight company founded in 2012 that offers affordability and adherence solutions to health plans, self-funded employers, and patients to lower prescription costs. The company raised $18.4 million in a private equity funding round on November 27, 2017, led by McCarthy Capital, marking one of its three funding rounds with total funding reaching over $21-22 million prior to its acquisition. This round aimed to further propel business growth and support its goal of helping people save money on prescriptions, as highlighted by founder and CEO Michael Rea, who started the company after identifying savings opportunities for patients burdened by high medication costs. The company continued growing post-2017, culminating in its acquisition by McKesson on September 19, 2022, for an upfront payment of $600 million plus up to $275 million in contingent consideration based on performance through 2025, valuing the deal at up to $875 million. This made it one of the largest startup exits in Kansas City history, with the purchase allocation including $229 million in intangible assets and $463 million in goodwill. Rx Savings Solutions strengthened McKesson's offerings in medication access, affordability, and adherence.
Sep 2015Series A-$3MRx Savings Solutions is a prescription pricing and pharmaceutical benefits software company founded in 2008 and headquartered in Overland Park, Kansas. The company's platform helps employers and health plans identify the lowest-cost medication options while maintaining clinical effectiveness, addressing the fact that employers on average overspend by 22 percent on prescription costs. In September 2015, Rx Savings Solutions closed a $2.7 million Series A funding round led by Kansas City investors Dan Henry and Jeffrey Brown. The capital was allocated toward product development and business expansion. At the time of the funding, the company had grown from two to 27 employees and counted the State of Kansas and Berkshire Hathaway's media group among its top clients. The company projected growth to one million users within the following 12 months. Rx Savings Solutions ultimately exited when McKesson Corporation acquired the company in September 2022 for up to $875 million, representing one of the largest startup exits in Kansas City history.

Who has invested in Rx Savings Solutions?

1 investor has backed Rx Savings Solutions across its funding rounds, including McCarthy Capital.

Lead investors include McCarthy Capital.


Rx Savings Solutions Investors

Investors in Rx Savings Solutions by funding rounds participated
InvestorHQRoundsRoleFirst check

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Rx Savings Solutions Competitors

Rx Savings Solutions competitors include listed companies like Value HR, MedicalSystem Technology and HealthStream, and private ones like Rightway, MediTrust Health and Collective Health.

Public and private companies comparable to Rx Savings Solutions
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
RightwayUnited StatesNew York City, NYPrivate--$1.1B-
MediTrust HealthChinaShanghaiPrivate$154M-$1.4B9.3x
Collective HealthUnited StatesSan Francisco, CAPrivate--$1.5B-
Value HRJapanJapanPublicly listed$65M$9M$270M4.1x
MedicalSystem TechnologyChinaChinaPublicly listed$45M$12M$889M15.6x
HealthStreamUnited StatesUnited StatesPublicly listed$304M$63M$892M2.6x

Rx Savings Solutions Public Comps

Rx Savings Solutions is no longer listed, but its public comps include MedicalSystem Technology, HealthStream, Hangzhou Pinming Software, Eurowag, Sphere, B-Soft Co., iFLYHealth, Vitec Software, PHC Holdings and Phreesia.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
MedicalSystem Technology$45M$12M18.9x15.6x70.7x62.9x
HealthStream$304M$63M2.8x2.6x13.2x11.2x
Hangzhou Pinming Software$65M$8M12.5x11.9x100.2x-
Eurowag$2.7B$119M0.5x3.0x10.3x7.5x
Sphere$70M$6M14.3x6.9x156.3x103.0x
B-Soft Co.$157M($37M)4.7x4.8x(20.0x)(20.0x)
iFLYHealth$136M($7M)7.7x6.2x(150.8x)(144172.5x)
Vitec Software$371M$151M3.7x3.5x9.1x9.0x

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Common questions about Rx Savings Solutions

When was Rx Savings Solutions founded?Rx Savings Solutions was founded in 2008.
Where is Rx Savings Solutions headquartered?Rx Savings Solutions is headquartered in Kansas City, KS, United States.
Is Rx Savings Solutions publicly listed?No, Rx Savings Solutions was acquired by McKesson in September 2022.
Who acquired Rx Savings Solutions?Rx Savings Solutions was acquired by McKesson in September 2022.
How much was Rx Savings Solutions acquired for?Rx Savings Solutions was acquired for $875M in September 2022.
How much funding has Rx Savings Solutions raised?Rx Savings Solutions has raised $21M across 2 funding rounds.
What was Rx Savings Solutions' last funding round?Rx Savings Solutions' last funding round was a $18M Series B in November 2017, led by McCarthy Capital.
Who are Rx Savings Solutions' investors?Rx Savings Solutions' investors include McCarthy Capital.
Which companies are comparable to Rx Savings Solutions?Companies comparable to Rx Savings Solutions include Rightway, MediTrust Health, Collective Health, Value HR, MedicalSystem Technology and HealthStream.

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