Navigation corporate Virgin Pulse and advantages and analytics platform HealthComp introduced Wednesday that they plan to merge to create an built-in platform for employer-sponsored advantages.

The $3 billion deal was once first reported by means of The Wall Side road Magazine. Windfall, Rhode Island-based Virgin Pulse works with employers, well being plans and well being programs. It provides a navigation platform known as Homebase for Well being, which gives get admission to to motivating demanding situations, way of life coaches and distinctiveness spouse systems. Fresno, California-based HealthComp works with employers, agents and suppliers. It provides declare coverage and integrity, medical care control systems, customizable generation, a customer support type and data-driven reviews.

Virgin Pulse is sponsored by means of Marlin Fairness Companions, whilst HealthComp is sponsored by means of New Mountain Capital, consistent with a information unencumber. New Mountain Capital would be the majority proprietor of the joined entity, which can serve greater than 1,000 self-insured employers and greater than 20 million individuals. The mixed corporate may also be sponsored by means of Morgan Well being and Blackstone.

During the merger, plan design, plan control, cost integrity, well being navigation, preventive care and virtual healing services and products will all be built-in into Virgin Pulse’s Homebase for Well being platform.

“We’re combining well being and wellbeing, navigation and advocacy [from Virgin Pulse], plus plan control and cost integrity [from HealthComp], and making it conceivable for a member to control all of those functions via a unmarried high-tech/high-touch revel in. On best of this, it’s going to all be powered by means of the trade’s maximum tough and predictive analytics and personalization engine,” declared Chris Michalak, CEO of Virgin Pulse, in an electronic mail. Michalak will function the CEO of the mixed corporate.

Chad Harris, CEO of HealthComp, added that this kind of carrier is wanted as employers are combating expanding healthcare prices.

“As healthcare prices proceed to upward thrust, the will for an built-in revel in within the employer-sponsored advantages ecosystem has change into much more the most important, and in combination we will create a complete healthcare revel in with higher results and effects,” Harris mentioned in an electronic mail.

Michalak echoed Harris’ remark, noting that “employers are going through expanding value pressures plus heightened call for from workers to supply whole-person enhance for preventative, episodic and persistent healthcare eventualities.” Certainly, employers’ healthcare prices are expected to building up by means of 8.5% in 2024 to greater than $15,000 in step with worker, consistent with a up to date Aon document.

The merger deal is predicted to near within the fourth quarter of 2023, pending regulatory approvals and “delight of all ultimate prerequisites beneath the definitive settlement.”

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