PatientPoint has combined with Outcome Health, spawning one of the largest advertising networks in the point-of-care space.
The combined company will operate under the PatientPoint brand and will be majority owned by a group of investors including funds managed by private-equity firms L Catterton and Littlejohn & Co., which had already been backers of PatientPoint and Outcome Health, respectively. Terms of the deal were not disclosed.
The new entity, called PatientPoint Health Technologies, will be led by PatientPoint’s existing executive team, including Mike Collette as CEO, Linda Ruschau as chief client officer and Pat O’Brien as chief financial officer, according to a statement.
The former competitors, both of which coordinate and manage the display of content on screens in doctors’ offices and other point-of-care settings, have a combined valuation of roughly $600 million, Bloomberg reported last fall, when talks of a potential merger had first surfaced.
Outcome was a once high-flying Chicago startup, with a one-time $5.5 billion valuation following a 2017 funding round led by Goldman Sachs. Then came allegations that it defrauded advertisers, most of whom were pharmaceutical companies, and a federal probe that resulted in Outcome paying a $70 million fine to the Justice Department.
Collette praised Outcome Health CEO Matt McNally and COO Nandini Ramani for turning around the company in the wake of the scandal and for rebuilding client trust. McNally joined in 2018, after Nandini had been leading the organization as interim CEO.
“While Matt will be moving on to pursue his next leadership opportunity, we want to thank him for his tireless leadership and the culture of integrity he helped build during his tenure as CEO,” a spokesperson said, adding that both executives will continue as advisors.
Nandini will remain with the company through a transition period to help ensure a successful integration. “The strong tech infrastructure, systems and processes she and her team have put in place will be a huge asset to the go-forward organization,” the spokesperson said.
The combined ad network comprises 50,000 physician offices in the U.S. and roughly 150,000 healthcare providers, according to PatientPoint. Collette said the company has significant free cash flow to enhance its tech-enabled platform and expand into new provider segments.
Neither L Catterton nor Littlejohn responded to a request for comment at press time.