Olive AI has sold substantially all of its assets to Waystar and Humata Health
Olive AI is leading healthcare revenue cycle management (RCM) software provider that leverages the power of artificial intelligence (AI), machine learning and other automation technologies to remove the need for human intervention in collecting compensation for care for the nation’s largest health systems. The company’s solutions automate high-volume repetitive administrative workflows in the revenue cycle, including coverage identification and eligibility verification, claims and remittance processing and end-to-end prior authorization.
Owing to various operational and macroeconomic market factors, Olive experienced significant liquidity constraints and an inability to service its debt obligations. Despite significant cost reductions and organizational restructuring efforts, including multiple reductions in force and the divestiture of non-core assets, the company’s path to profitability remained uncertain. Olive engaged Lincoln International to launch an extensive marketing process to explore all potential transaction alternatives over a significantly compressed timeline.
Lincoln worked closely with the company’s management team, its operational advisor and legal counsel to conduct a highly efficient out-of-court sales process, ultimately selling the Clearinghouse and Patient Access business to Waystar and the Prior Authorization business to Humata Health via separate asset purchase agreements. Immediately upon being engaged, Lincoln swiftly secured incremental liquidity from the existing lender and launched a broad process to buyers within two weeks of retention for the sale of the company in its entirety or in parts. Lincoln evaluated multiple transaction structures and alternatives for the company’s board and conducted various analyses to help buyers assess the opportunity. Lincoln leveraged competitive tension to drive buyers to a timely close and successfully close two out-of-court transactions before the company’s liquidity ended.
Brendan Murphy, Lincoln International Managing Director who co-led the transaction, commented, “We are pleased to have advised Olive AI through this challenging and complex situation in an expedited manner. By exploring numerous transaction structures and strategic alternatives, we were able to find the right partners to support Olive’s long-term objectives at a critical inflection point in the healthcare RCM industry. It was a pleasure to work collaboratively with Cooley and Paladin Management Group to navigate a highly complicated, out-of-court sale process that yielded a creative outcome for all stakeholders.”
Mike Siano, Lincoln International Managing Director who co-led the transaction, added, “We enjoyed working with the Olive, Waystar and Humata Health teams on this important transaction. The acquisitions by Waystar and Humata Health strategically position the companies to further advance Olive’s mission to automate administrative workflows in the healthcare revenue cycle. We look forward to the continued growth and success of the combined platforms.”
Meet our Senior Team
I listen to my clients to understand their needs, gain insight on opportunities they see within their industry, connect with what inspires them about their business and then collaboratively work to articulate the value of their business to the market in order to drive a successful outcome.
View More Transactions in Capital Advisory & Healthcare
Lincoln International advised Aesthetic Partners on receiving a significant investment from Norwest
Lincoln International advised Hallmarq Veterinary Imaging, a portfolio company of August Equity, on its refinancing
Lincoln International advised Millbrook Healthcare Group on the sale of Ross Care to Medequip, a subsidiary of Medux
Lincoln International advised H2 Health, a portfolio company of Grant Avenue Capital, on its acquisition of Physical Therapy Today
Lincoln International advised Ferty9 Fertility Center in raising growth capital from Verlinvest
Lincoln International advised Alaris Equity Partners, in partnership with Brookfield Special Investments, on raising $546 million in equity and $180 million in debt for Sono Bello
Any information or testimonials contained in this post may not be representative of the experience of other clients and is no guarantee of future performance or success.