San Francisco – December 14, 2020 – Cooley advised healthcare software company Olive on its $225.5 million financing round led by Tiger Global, as well as its acquisition of Verata Health to accelerate artificial intelligence technology for healthcare providers and payers. Partner Peter Werner led the Cooley teams advising Olive on the transactions.
Existing investors General Catalyst, Drive Capital and Silicon Valley Bank and new investors GV, Sequoia Capital Global Equities, Dragoneer Investment Group and Transformation Capital Partners also joined the financing round. Olive has now secured $385 million in financing in the last nine months and $448 million since its founding in 2012 – and the round brings the company’s valuation to $1.5 billion. Olive will use the new capital to accelerate product development. Olive’s disruptive innovation will continue to intensely focus on addressing healthcare’s most burdensome issues as the industry copes with more demands than ever.
“For every dollar Olive makes, healthcare saves five. That amounts to pretty incredible cost savings throughout the industry, and it’s helped us become an indispensable part of hospitals’ recovery plan during the pandemic,” Sean Lane, CEO of Olive, said in a news release. “In the year ahead, we’re setting our sights on the big picture – investing in R&D to bring more solutions to hospitals and health systems that not only disrupt the industry, but also help to fix a broken system at a critical time for humanity.”
Olive’s acquisition of Verata Health will further its goal of improving patient access to care and remedying the $31 billion prior authorization challenge by solving prior authorizations for providers and payers via artificial intelligence as a combined solution under the Olive name. Prior authorizations were the most costly and time-consuming transactions for providers in 2019 and are among the top reasons patient care is delayed. As cash-strapped hospitals and health systems strive to meet patient, payer and provider needs, the demand for AI technologies to increase efficiency and improve the patient experience has become critical.
“This acquisition allows Olive to accelerate innovation in areas where we can drive the biggest impact, and further expands our solutions to providers and payers seeking to transform healthcare,” Lane said in a news release.
Olive is designed to drive connections, shining a new light on the broken healthcare processes that stand between providers and patient care. It uses AI to reveal life-changing insights that make healthcare more efficient, affordable and effective. Throughout 2020, Olive has cemented itself as critical to the infrastructure of more than 600 US hospitals, including 22% of the top 100 health systems in the country.
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