Veradigm, formerly known as Allscripts, has announced a $140 million acquisition of ScienceIO, a specialist in AI foundation models for healthcare. This move aims to enhance Veradigm’s offerings in electronic health records, analytics, and other healthcare services by integrating ScienceIO’s AI technology to organize patient data and improve outcomes.
ScienceIO, which came out of stealth in 2021 with $8 million in seed funding, has been recognized for its contributions to healthcare AI, including participation in Mayo Clinic’s AI startup program. The acquisition, funded through cash on hand with $44 million deferred over three years, is expected to close swiftly following board approval.
Veradigm intends to leverage ScienceIO’s AI for its large dataset, encompassing 400,000 providers and over 200 million patients, to drive value-based care and reduce administrative burdens. This strategic acquisition positions Veradigm to enhance its product offerings across its provider, payer, and life sciences segments, aiming for growth and value creation in the healthcare data intelligence market.
Comments on the acquisition from those involved:
“This acquisition is a natural next step in the strategy our board has been focused on over the past year to drive continued growth across our business units and create outsized value from the data and analytics of our existing business, while maintaining our healthy balance sheet and strong cash position.”
— Greg Garrison, executive chairman of the Veradigm board
“Joining Veradigm aligns with ScienceIO’s mission to better serve patients and healthcare professionals with the help of responsible AI.”
— Will Manidis, ScienceIO CEO
“Veradigm has built one of the most unique and valuable assets in the healthcare industry: a large-scale, high-quality data set that spans providers, payers and life sciences companies. By building on our existing partnership and fully integrating ScienceIO’s AI platform, we will be able to extract greater and more accurate insights from this data set and build an AI center of excellence to empower Veradigm’s portfolio across all of our business units with market-leading capabilities.”
— Yin Ho, M.D., Veradigm’s interim CEO
