Roche To Acquire Health Tech Firm Flatiron Health for $1.9 BillionBy
Roche has agreed to acquire a full stake in Flatiron Health, a New York-headquartered healthcare technology and services company focused on oncology, for $1.9 billion. Roche now owns a 12.6% stake in the company.
Flatiron Health is involved in electronic healthcare records software services in oncology and the analysis and processing of data from clinical cancer research. Flatiron Health works with companies and regulators to develop approaches to incorporate routine clinical data into regulatory decision-making, including the design and validation of endpoints. Working with its network of community-based oncology practices and academic medical centers, Flatiron has also developed a suite of software products.
The company is headed by two previous Google executives. This includes its co-founder and chief executive officer, Nat Turner, as well as Zach Weinberg, who is co-founder, president, and chief operating officer of Flatiron Health. Between 2013 and 2014, Flatiron Health raised $138 million in a venture capital financing led by Google Ventures, the venture capital investment arm of Alphabet, Google’s parent company. In January 2016, Roche provided $175 million in funding to Flatiron Health to support its cloud-based oncology software.
Under the agreement, Roche will pay $1.9 billion to Flatiron Health, subject to certain adjustments. The transaction is subject to customary closing conditions and is expected to close in the first half of 2018. The parties expect Flatiron Health to continue its current business model, partner network, and overall goals.