Digital health platform and investor darling Transcarent has acquired Accolade (Nasdaq: ACCD), a personalized health and benefits company that offers virtual-first integrated care, including behavioral health services.

Transcarent announced on Wednesday that it would acquire Accolade for $7.03 per share in cash, a total equity value of approximately $621 million.

The artificial intelligence (AI)-forward companies will combine their platforms into one product that unites “the best of provider, partner, and payer ecosystems,” according to Transcarent.

“Our clients – employers and health plans and the people who work for them or who they serve – are telling us that healthcare today is too confusing, too complex and too costly,” Glen Tullman, CEO of Transcarent, said in a statement. “By integrating our recently introduced generative AI-powered WayFinding and comprehensive care experiences with Accolade’s advocacy, expert medical opinions, and primary care, we have a solution that finally makes it easy to access high-quality health and care and deliver lower costs for the people who pay for care – employers, and all of us.”

San Francisco, CA-based Transcarent is a digital health platform that connects users to health benefits and insurance details through its AI-powered app. The unicorn startup, with a valuation of about $2.2 billion, has raised approximately $450 million from investors, including General Catalyst, 7wire Ventures, Geodesic Capital and Threshold.

Transcarent is growing rapidly, adding over 500,000 members to its platform in the first week of January, according to its CEO.

The company has added more than 1,000 clinicians to its team through its acquisition of Accolade.

Seattle, Washington-based Accolade has employer, health plan and consumer health care offerings that blend virtual primary care and mental health care. The company’s mental health offerings include care for conditions including depression, anxiety, substance use disorders (SUDs) and psychiatric conditions.

Accolade has partnerships with several behavioral health providers, including Brightside, Equip, FOLX Health, Headspace and Lyra. 

“The two companies share a focus on embracing AI and advanced technology to change the way consumers experience the healthcare system,” Rajeev Singh, CEO of Accolade, said in a statement. “Combining Transcarent’s complex care experience with Accolade’s people and 16 years of healthcare data, we will create a more personalized healthcare experience for people while improving outcomes and driving down costs.”

The deal is expected to close in the second calendar quarter of 2025, pending several conditions. After the deal closes, Accolate will be a privately held company and de-listed from Nasdaq.