Cooley LLP advised Olive on the deal.
Healthcare software company Olive announced 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.
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.
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.
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.
The Cooley team included Peter Werner (Picture), Gaël Y. Hagan, Melissa H. Boyd, Eric Walder, Michael Abramson, Blake Martell, Ajay Athavale, Tanisha James, Jonathan Rivinus, Rick Jantz, Philip Mitchell, Jennifer Shanley, Bryan Berman, Kris Kleiner and Ross Eberly.
Involved fees earner: Michael Abramson – Cooley LLP; Ajay Athavale – Cooley LLP; Bryan Berman – Cooley LLP; Melissa Boyd – Cooley LLP; Ross Eberly – Cooley LLP; Gaël Hagan – Cooley LLP; Tanisha James – Cooley LLP; Rick Jantz – Cooley LLP; Kristopher Kleiner – Cooley LLP; Blake Martell – Cooley LLP; Phil Mitchell – Cooley LLP; Jonathan Rivinus – Cooley LLP; Jennifer Shanley – Cooley LLP; Eric Walder – Cooley LLP; Peter Werner – Cooley LLP;
Law Firms: Cooley LLP;
Clients: Olive Inc;