Castlight Health to Be Acquired by CD&R's Vera for $370 Million

By Colin Kellaher

Castlight Health Inc. on Wednesday said it agreed to be acquired by Vera Whole Health Inc., an advanced primary healthcare provider majority owned by private-equity firm Clayton Dubilier & Rice LLC, for about $370 million.

Castlight, a San Francisco provider of healthcare information-technology solutions, said Vera would pay $2.05 a share in cash, a 25% premium to Tuesday's closing price of $1.64.

Castlight said CD&R, which bought a majority stake in Seattle-based Vera last year, would commit up to $338 million to support the deal, while health insurer Anthem Inc., a long-time Castlight customer, also plans to invest in the combined company.

Castlight said the combined company would integrate its navigation technology with Vera's primary-care model to expand access to care, reduce healthcare costs and improve outcomes.

Castlight said Ron Williams, a former chairman and chief executive of health insurance giant Aetna who now serves as chairman of Vera and an operating adviser to CD&R, would serve as chairman of the combined company upon completion of the transaction, expected by the end of the first quarter.

Shares of Castlight jumped 23%, to $2.02, in premarket trading Wednesday.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

January 05, 2022 09:04 ET (14:04 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.