VillageMD Acquisition, Valuation, Funding & Investors
VillageMD was acquired by Walgreens Boots Alliance in October 2021.
VillageMD acquisition price
Undisclosed
Acquired by Walgreens Boots Alliance · Oct 2021
VillageMD revenue at acquisition
$1.3B
Last twelve months · Oct 2021
Cumulative funding VillageMD raised
$3B
across 5 funding rounds
Key investors in VillageMD
Oak HC/FT
Kinnevik
Adams Street Partners
Town Hall Ventures
Oxeon Partners
Athyrium Capital Management LP
About VillageMD
VillageMD is a Chicago-based provider of value-based primary care that operates Village Medical practices and partners with independent primary care physicians. It runs owned and affiliated clinics, including practices co-located with Walgreens pharmacies under the Village Medical at Walgreens brand, and offers in-person, at-home and telehealth care. VillageMD supports its physicians with data analytics, care coordination and on-the-ground support, and earns revenue largely through risk-based contracts with commercial, Medicare Advantage and Medicaid health plans. Its revenue rose from $217 million in 2017 to an expected $1.3 billion in 2021. In January 2023 it acquired Summit Health-CityMD in a transaction valued at about $8.9 billion, funded by Walgreens Boots Alliance and by a $2.5 billion investment from Cigna's Evernorth. Walgreens became majority owner in 2021 with a $5.2 billion investment that raised its stake to 63%, after earlier backing from Oak HC/FT, Athyrium Capital Management and Kinnevik. VillageMD was founded in 2013.
Founded
2013
HQ
Chicago, ILWebsite
Status
Acquired
Customer focus
B2C
Revenue model
Services, Subscription
Revenue
$1.3B (Oct 2021)
Valuation
$858M (Jul 2020)
VillageMD Acquisition
VillageMD was acquired by Walgreens Boots Alliance for an undisclosed price on 14 October 2021.
Before the acquisition VillageMD had raised $3B across 5 funding rounds.
VillageMD is a primary care provider operating value-based practices, with over 230 locations across 15 U.S. markets as of October 2021. On October 14, 2021, Walgreens Boots Alliance announced a $5.2 billion investment in VillageMD, increasing its ownership from 30% to 63%, while VillageMD remained a standalone company with its own board and management, planning an IPO in 2022. The investment aimed to accelerate expansion to over 600 co-located Village Medical at Walgreens practices in more than 30 markets by 2025, and 1,000 by 2027, with a focus on underserved communities and comprehensive care via in-person, at-home, and telehealth services. The partnership positioned Walgreens as the first national pharmacy chain to offer full-service primary care with physicians and pharmacists co-located in stores. VillageMD had grown rapidly, with revenues rising from $217 million in 2017 to an expected $1.3 billion in 2021. The transaction was subject to antitrust review and customary conditions, expected to close by end of 2021, after which VillageMD's financials would be consolidated by Walgreens.
| Acquirer | Date | Type |
|---|---|---|
| 14 Oct 2021 | Strategic M&A |
Sources: villagemd.com, healthcaredive.com, sec.gov
VillageMD Valuation
VillageMD is currently valued at $858M, based on its strategic investment round in July 2020. Read the announcement ↗
The $275M round was led by Walgreens Boots Alliance, with participation from Kinnevik.
VillageMD valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Jul 2020 | Strategic investment | $858M |
VillageMD Funding History
VillageMD has raised a total of $3B across 5 funding rounds.
VillageMD's first fundraising round was a $36M Series A in September 2015. The most recent completed round was a $2.5B strategic investment round in November 2022.
VillageMD funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Nov 2022 | Strategic investment | Evernorth (lead) | $2.5B | - | In November 2022, Evernorth, the health services business of Cigna, agreed to invest $2.5 billion in VillageMD to help fund VillageMD's acquisition of Summit Health-CityMD, a provider of primary, specialty and urgent care, in a transaction valued at approximately $8.9 billion. Walgreens Boots Alliance, VillageMD's majority owner, committed a further $3.5 billion through an even mix of debt and equity to support the same acquisition. Evernorth became a minority owner of the combined company when the Summit Health-CityMD deal closed in January 2023, and Cigna executives said the investment was meant to advance Evernorth's push into value-based care for commercially insured patients. The combination joined VillageMD's value-based primary care model with Summit Health-CityMD's multispecialty and urgent care network, creating one of the largest independent provider groups in the United States. VillageMD, founded in 2013 and based in Chicago, operates Village Medical primary care practices, many co-located with Walgreens stores, and had become majority-owned by Walgreens after its $5.2 billion investment in 2021. |
| Jul 2020 | Strategic investment | Walgreens Boots Alliance (lead); Kinnevik | $275M | $858M | On 8 July 2020, VillageMD raised $275 million in an equity funding round led by Walgreens Boots Alliance, with Kinnevik investing a further $25 million. Alongside the round, Walgreens agreed to invest a total of $1 billion in VillageMD over the following three years as part of a partnership to open 500 to 700 Village Medical at Walgreens full-service primary care clinics co-located with Walgreens stores in more than 30 US markets within five years. The clinics were to be staffed by primary care providers recruited by VillageMD. Kinnevik said that, in light of the partnership, it would value its existing VillageMD holding, excluding the new $25 million, at SEK 2.4 billion. VillageMD, based in Chicago and founded in 2013, operates value-based primary care practices and supports affiliated physicians with data, technology and care coordination under risk-based contracts with health plans. The investment made Walgreens a significant minority shareholder ahead of its October 2021 agreement to invest a further $5.2 billion and raise its stake to 63%. |
| Sep 2019 | Series B | Kinnevik (lead); Adams Street Partners; Town Hall Ventures; Oak HC/FT | $100M | - | In September 2019, VillageMD announced a $100 million Series B financing led by Kinnevik, the Swedish growth investment company, with a returning investment from Oak HC/FT and new investments from Town Hall Ventures and Adams Street Partners. The company said the proceeds would fund expansion into new and existing markets and further development of its primary care platform. VillageMD, based in Chicago, partners with and operates primary care practices under value-based contracts, giving physicians data analytics, care coordination and on-the-ground support intended to improve clinical outcomes and lower the total cost of care. Its model covers commercial, Medicare, Medicare Advantage and Medicaid populations. The round followed a $36 million Series A led by Oak HC/FT in September 2015 and an $80 million growth financing led by funds managed by Athyrium Capital Management in January 2018. In July 2020 Walgreens Boots Alliance led a $275 million equity round and agreed to invest $1 billion in the company over three years, and in 2021 Walgreens became the majority owner. |
| Jan 2018 | Undisclosed stage | Athyrium Capital Management LP (lead) | $80M | - | VillageMD, a national provider of primary care services, closed an $80 million growth capital financing round on January 4, 2018, led by funds managed by Athyrium Capital Management, LP. The funding aims to extend VillageMD’s national footprint and enhance its industry-leading data and technology platform. This follows a previous $36 million growth capital round led by Oak HC/FT in September 2015. VillageMD partners with primary care providers to deliver solutions that improve clinical outcomes, enhance patient and physician satisfaction, and lower total care costs through data analytics, physician-based care coordination, and on-the-ground support. CEO Tim Barry highlighted the company's pride in its clinical and financial results achieved with primary care partners over the past four years, positioning the Athyrium partnership as a key step for future growth. VillageMD's value-based care model drives results across commercial, Medicare, Medicare Advantage, and Medicaid populations. Partner practices demonstrate lower admissions and readmissions rates (20-45% below community averages), Medicare costs 20-45% lower, and commercial costs 15-20% lower, earning recognition from the Centers for Medicare and Medicaid Services for high-quality performance. The financing supports expansion into more markets and technology enhancements, as noted in reports from ChicagoInno and Chicago Business Journal. Athyrium partner Hondo Sen emphasized VillageMD's proven track record in driving improved quality and cost outcomes through primary care partnerships, viewing it as a critical change agent in U.S. healthcare. |
| Sep 2015 | Series A | Oak HC/FT (lead); Oxeon Partners | $36M | - | VillageMD is a management services company that partners with leading healthcare providers to improve care delivery and optimize population health outcomes, founded in 2013. The company operates a primary care population health model designed to enable primary care providers to deliver superior clinical results while collaborating with health plans on financial models that support improved outcomes. In September 2015, VillageMD closed a $36 million Series A financing round led by Oak HC/FT, with additional participation from other new and existing investors. At the time of the funding announcement, the company partnered with over 400 primary care providers across markets in Texas and Indiana, and the capital was intended to propel expansion into several new states across the Midwest, Northeast, and Southeast. The company did not disclose post-money valuation, revenue figures, or EBITDA metrics in connection with this round; such financial details were not publicly released at the time of the announcement. |
Who has invested in VillageMD?
8 investors have backed VillageMD across its funding rounds, including Oak HC/FT, Kinnevik, Adams Street Partners, Town Hall Ventures, Oxeon Partners and Athyrium Capital Management LP.
Lead investors include Evernorth, Walgreens Boots Alliance, Kinnevik, Athyrium Capital Management LP and Oak HC/FT.
VillageMD Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| Greenwich, CT | 2 | Lead | Sep 2015 | |
 Stockholm | 2 | Lead | Sep 2019 | |
| Chicago, IL | 1 | Participant | Sep 2019 | |
| New York City, NY | 1 | Lead | Jan 2018 | |
| St Louis, MO | 1 | Lead | Nov 2022 | |
| New York City, NY | 1 | Participant | Sep 2019 | |
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Start Free TrialAcquisitions by VillageMD
VillageMD has acquired 4 companies to date.
Last acquisition by VillageMD was on March 3rd 2023. VillageMD acquired Starling Physicians for undisclosed valuation.
Latest Acquisitions by VillageMD
| Description | Starling Physicians is a New Haven-based multispecialty medical group that operates over 40 locations throughout Connecticut. The practice encompasses primary care alongside specialties like cardiology, orthopedics, gastroenterology, and oncology. Starling Physicians coordinates patient care through electronic health records and a network of more than 200 providers. Established through mergers of local practices, the group maintains a physician-owned model focused on central Connecticut communities including Middletown and Meriden. | Summit Health is a multispecialty medical practice network offering primary care, specialty care and urgent care. It is based in Berkeley Heights, New Jersey, and is owned by VillageMD. | Healthy Interactions is a health engagement company designing programs for chronic disease management through structured patient-provider dialogues. Based in Boston, Massachusetts, its tools include group visits for diabetes and hypertension, digital apps for goal tracking, and peer support networks. Healthy Interactions partners with health systems to improve adherence rates and reduce hospitalizations. | Summit Medical Group Arizona is a Phoenix-based primary care practice upholding a patient-centered approach through internal medicine, family medicine, and urgent care services. Located in the West Valley, it offers preventive screenings, chronic disease management, and telehealth consultations via smgarizona.com, expanding access with extended hours and same-day appointments. |
| HQ Country | | | | |
| HQ City | Hartford, CT | Berkeley Heights | Chicago, IL | Phoenix, AZ |
| Deal Date | 3 Mar 2023 | 7 Nov 2022 | 15 Feb 2022 | 30 Jan 2020 |
| Valuation | undisclosed | $8.9B | undisclosed | undisclosed |
| EV/Revenue | ||||
| EV/EBITDA | ||||
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VillageMD Competitors
VillageMD competitors include listed companies like U.S. Physical Therapy, Lunit and HealthStream, and private ones like Axtria, Helian Health and Heidi Health.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| United States | Publicly listed | $781M | $110M | $1.5B | 2.6x | |
 South Korea | Publicly listed | $61M | ($9M) | $851M | 12.4x | |
| United States | Publicly listed | $304M | $63M | $884M | 2.4x | |
| Berkeley Heights, NJ | Private | - | - | $900M | - | |
 Hangzhou | Private | - | - | $900M | - | |
 Sydney | Private | $50M | - | $901M | 18.0x |
VillageMD Public Comps
VillageMD is no longer listed, but its public comps include Lunit, Dr. Sulaiman Al Habib Medical Services, HealthStream, Terveystalo, B-Soft Co., Hangzhou Pinming Software, Clinica Baviera, Al Hammadi Holding, Gushengtang Holdings and Phreesia.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $61M | ($9M) | 13.0x | 12.4x | (91.1x) | (15.4x) | |||
| $410M | $110M | 2.6x | - | 9.8x | - | |||
| $304M | $63M | 2.6x | 2.4x | 12.3x | 10.2x | |||
| $1.4B | $259M | 1.1x | 1.2x | 6.2x | 6.6x | |||
| $158M | ($37M) | 5.0x | 5.1x | (20.9x) | (21.0x) | |||
| $66M | $8M | 11.4x | 10.9x | 91.4x | - | |||
| $338M | $95M | 2.6x | 2.4x | 9.2x | 8.4x | |||
| $329M | $98M | 3.0x | 2.8x | 10.1x | 10.8x | |||
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Common questions about VillageMD
| When was VillageMD founded? | VillageMD was founded in 2013. |
| Where is VillageMD headquartered? | VillageMD is headquartered in Chicago, IL, United States. |
| Is VillageMD publicly listed? | No, VillageMD was acquired by Walgreens Boots Alliance in October 2021. |
| Who acquired VillageMD? | VillageMD was acquired by Walgreens Boots Alliance in October 2021. |
| What is VillageMD's valuation? | VillageMD was last valued at $858M in its strategic investment round in July 2020. |
| How much funding has VillageMD raised? | VillageMD has raised $3B across 5 funding rounds. |
| What was VillageMD's last funding round? | VillageMD's last funding round was a $2.5B strategic investment round in November 2022, led by Evernorth. |
| Who are VillageMD's investors? | VillageMD's investors include Oak HC/FT, Kinnevik, Adams Street Partners, Athyrium Capital Management LP, Evernorth, Town Hall Ventures, Walgreens Boots Alliance and Oxeon Partners. |
| Which companies are comparable to VillageMD? | Companies comparable to VillageMD include U.S. Physical Therapy, Lunit, HealthStream, Axtria, Helian Health and Heidi Health. |
| How many companies has VillageMD acquired? | VillageMD has acquired 4 companies, including Starling Physicians, Summit Health, Healthy Interactions and Summit Medical Group Arizona. |
| What was the largest acquisition by VillageMD? | The $8.9B acquisition of Summit Health in November 2022 is the largest acquisition VillageMD has made to date. |
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