98point6 nabs $20M; inks a licensed technology pact with Tacoma

Seattle-based 98point6, an on-demand consultation, diagnosis and treatment provider, has recently announced that it is authorizing its virtual care delivery platform in a deal with Tacoma, a Washington-based MultiCare Health System.

This is the first stint when the firm is foraying as a third-party software provider and has secured $20 million in a convertible note offering to fund its expansion.

According to sources, this funding comes from investment company Activant Capital and private equity giant L Catterton; both of which headed 98point6’s Series E round, which raised $118 million in October 2020.

This new licensed tech is said to be leveraged for assisting Indigo Health, a division of MultiCare Health System that addresses urgent care for minor injuries and illness.

For the unversed, Indigo was established in 2015 and currently owns around 35 urgent care clinics around Washington, along with a virtual care component. MultiCare is recognized as one of the leaders in the health system in Washington state.

According to Ryan Fix, Indigo Health President, the healthcare ecosystem worldwide is quickly changing, with investments made by significant players in the technology and healthcare segments. And 98point6’s recent move is expected to be a breakthrough in the space.

However, the firm did not disclose any details about the recent transaction.

The move by 98point6 comes at a time when tech companies are foraying into healthcare. For instance – Amazon is all set to take over One Medical, a San Francisco-based chain of primary healthcare clinics, for a deal worth $3.9 billion and is also in bidding discussions on in-home technology provider Signify Health.

Additionally, Oracle also acquired health IT firm Cerner in a deal worth $28 billion.

98point6, founded in 2015, seeks to establish connectivity with physicians in a seamless way. Its subscriber base benefitted from the COVID-19 pandemic, almost tripling in size. However, reports claim it cut off its 10% staff in July.

Source credit - https://www.geekwire.com/2022/telehealth-startup-98point6-raises-20m-inks-deal-with-health-system-to-license-tech/