The healthcare space is getting another huge boost, but this time it came from a well-known investor and private equity firm. GoodRx, the US-based online drug price comparison shopping site, received strategic growth investment this week, courtesy of private equity firm Silver Lake. Financial terms of the deal were not disclosed to the public.
According to CNBC, the technology-focused private equity firm has announced that it has acquired a significant stake in health-technology startup GoodRx, valuing the startup at around $2.8 billion. The company plans to use the new funding to fuel its expansion and beef up operations.
Silver Lake will now join GoodRx’s current investors Francisco Partners and Spectrum Equity. As part of the transaction, Silver Lake’s Greg Mondre and Adam Karol will also join GoodRx’ board of directors.
GoodRx, the fast-growing healthcare startup
Founded in 2011 and based in Santa Monica, California, GoodRx is the industry’s first and only prescription drug price comparison tool created for consumers. The company provides a real-time market-intelligence platform that collects retail prices and coupons for virtually every pharmacy in the United States. The company’s platform, which is used by more than 10 million Americans, simplifies the prescription drug market through increased transparency and lower prices.
The latest investment will make the private equity firm Silver Lake the largest shareholder in the online drug comparison site. The private equity firm will own about one-third of the online drug comparison platform, according to reliable sources who asked not to be named because the financial terms of the deal are private. Both companies have declined to comment on the financial terms of the deal.
The news about GoodRx’s potential acquisition was first reported by online publication CNBC last June. That news has attracted many companies as well as potential buyer such as McKesson, a health distribution giant.