Datavant and Ciox Health today announced they have agreed to merge. In a deal valued at $7bn, the combined company will become largest health data network in the US.
The new company, named Datavant, will allow a secure exchange of data among its network of more than 2,000 US hospitals and 15,000 clinics. It will also work with data analytics companies and government agencies.
The deal is supported by the companies’ group of investors, led by investment firm New Mountain Capital, Labcorp, Cigna Ventures and Roivant Sciences.
Ciox CEO Pete McCabe will lead the new company, while Datavant CEO Travis May will take on the role of president and join the board of directors.
New investor, Sixth Street, an investment firm, will also join the merged company’s board of directors at deal completion.
The deal is expected to close in the third quarter of 2021.