Golden Gate Capital plans to acquire virtual care platform Recuro Health, Healthcare Dealflow is the first to report. The transaction does not appear to have been publicly announced.
Healthcare Dealflow identified the pending acquisition through a Notice of Material Change filed with the Massachusetts Health Policy Commission on October 16.
Under the proposed transaction, Recuro Health, Inc. will survive a merger and become a wholly owned subsidiary of RecHealth Intermediate, LLC, an entity indirectly owned by funds associated with Golden Gate. Existing Recuro shareholders will receive cash consideration, while some will retain an equity interest in the buyer’s parent. A portion of the consideration is contingent on Recuro’s future financial performance. Financial terms were not disclosed.
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Subscribe to The Daily Brief →Recuro is an integrated digital health company offering virtual-first care to employers, health plans and other organizations. Its core services include virtual primary care, behavioral health and urgent care, along with supplemental benefits spanning pharmacy, care management and advocacy. Its offerings are not sold directly to consumers.
The company also owns Wellspring Telehealth, LLC, which does business as WellVia and operates as a telehealth management services organization. WellVia provides non-clinical management and administrative services to affiliated physician practices, including Wellspring Physician P.C. of Massachusetts. The physician entities retain control over clinical care.
According to the filing, Recuro intends to continue operating in the ordinary course following the acquisition. The parties do not expect the transaction to result in material adverse changes to reimbursement rates, referral patterns, access to care or quality of care.
The proposed effective date is December 31, 2026. The parties also intend to submit notices of material change in California and Indiana and do not anticipate additional material changes during the following 12 months.
Recuro raised $47 million in a Series B financing in 2023 from investors including ARCH Venture Partners, the Flippen Group, GPG Ventures and 4D Capital. The company had a reported post-money valuation of $200 million at the time and annual recurring revenue of more than $20 million, according to comments then-CEO Michael Gorton provided to ION Analytics. Recuro has also expanded through acquisitions, including its 2022 purchase of virtual care provider WellVia.
Healthcare Dealflow is a healthcare M&A intelligence platform that tracks deal activity, trends and analysis across the healthcare sector for an audience of private equity firms, investment banks, corporate development teams, and transaction advisors. Subscribe to The Daily Brief here.