HealthTech startup Transcarent acquires Accolade for $621M as digital health M&A heats up

Transcarent just pulled off one of the biggest health-tech deals of the year. The digital health startup announced Tuesday that it has officially completed its $621 million acquisition of Accolade, a move that merges two major players in employer-focused healthcare.

The deal, first announced in January, received full shareholder and regulatory approval. Accolade shareholders walked away with $7.03 per share in cash, and the company is now delisted from Nasdaq. It’s the latest sign of public digital health companies shifting away from Wall Street as growth cools across the sector.

Transcarent Completes $621M Accolade Merger to Serve 20M+ Members with AI-Powered Care

“Today Transcarent announced the successful completion of its merger with Accolade, the leading health advocacy, expert medical opinion, and virtual primary care company in the market. The combined organization now serves over 20 million Members and more than 1,700 employer and health plan clients as the One Place for Health and Care,” the company said in a news release.

Transcarent CEO Glen Tullman, who led Livongo before its $18.5 billion exit to Teladoc, is betting big again. “Adding Accolade’s people and capabilities will significantly enhance our existing offerings,” he said. “We’re creating an entirely new way to experience health and care. We are truly better together.”

The merged company isn’t small. Transcarent says it now serves more than 20 million members and works with over 1,700 employer and health plan clients. The pitch? One place to handle care — from virtual primary care to cancer treatment and everything in between.

Transcarent was already known for offering self-insured employers pricing models tied to outcomes. With this acquisition, the company now layers on Accolade’s experience in health advocacy, medical opinions, and virtual care. Tullman wants the combined platform to make accessing care as easy as getting a rideshare—24/7 availability, AI-powered support, and fewer headaches dealing with benefits.

That AI layer is a big part of the story. Transcarent’s WayFinding platform and Accolade’s True Health Actions both pull from a deep stack of health data to guide members through their options. Whether it’s understanding treatment plans, getting a second opinion, or scheduling care, the goal is to make decisions easier—and reduce unnecessary procedures along the way.

The leadership team blends talent from both sides. Tullman stays on as CEO, with Snezana Mahon stepping into the role of President. The executive bench includes heads of product, tech, clinical strategy, and more. Accolade’s Kristen Bruzek now leads care delivery operations.

The $621 million deal was financed by General Catalyst and Tullman’s 62 Ventures, with additional funding from both new and returning backers. Cash from the combined companies and debt financing from JP Morgan helped seal the transaction.

Accolade, which went public in 2020 during the COVID-era digital health boom, struggled in the years after its IPO. Now, it joins a growing list of health tech firms that are leaving public markets behind, as the focus shifts from growth at all costs to scale, efficiency, and actual outcomes.

For Tullman and team, the message is clear: digital health isn’t shrinking—it’s reshaping. And they plan to be at the center of it.