Billing software startup Cedar has entered into a definitive agreement to purchase OODA Health, a healthcare technology company focused on improving the administrative experience, for $425 million, per a press release. The acquisition was partly funded by Cedar’s $200 million Series D raise in March, which valued it at $3.2 billion.
Cedar already tackles the complicated billing process between patients and healthcare providers, and now it can also handle the insurance bills. Annually, over 12 million patients across more than 35 healthcare providers use Cedar—which pulls billing information from electronic health records—to verify their insurance, pay a copay before the visit, and pay their outstanding bill after a visit. With the OODA acquisition, Cedar can enhance its value proposition by working directly with insurers instead of only working with healthcare providers. OODA enables patients to get one billing statement from their insurers that incorporates deductibles and other payments options. It also provides the flexibility of payment plans, reducing customers’ risk of having to pay a giant bill in one go, or ending up in collections.
The OODA acquisition positions Cedar as an end-to-end solution for consumers’ financial healthcare needs, and it should now further build out its healthcare network.