Reston, Va.–based Avizia is being acquired by telehealth company American Well, the two companies announced on Monday morning.
Avizia, which was formed by former Cisco executives in 2013, makes tools including a platform, mobile apps and devices, to help health providers deliver care remotely, often through video.
With the acquisition, Boston-based American Well is looking to add to Avizia’s technology including carts that hold telemedicine systems and software workflows. A release states American Well is particularly interested in Avizia’s capabilities in acute care, or the treatment of rapid onset diseases, where it already works with large health systems.
Specifically, Avizia said it has more than 40 clinical use cases for its technology, including treatment of stroke and behavioral health remotely. In all, it’s used in more than 70 health systems in 38 countries.
“Their team has built world-class solutions that complement ours perfectly,” American Well CEO Ido Schoenberg said in a statement. “Our merger will allow us to create the most comprehensive solution for our clients: an exceptional, singular, end to end offering.”
Terms of the deal were not disclosed. It is expected to close by the of the second quarter of 2018.
Founded by top execs Mike Baird, Luke Leininger and Cory Costley, Avizia is backed by more than $20 million in funding, according to Crunchbase. Local investors include Middleland Capital, Blu Venture Investors, Lavrock Ventures and NextGen Angels.
We are so excited to announce the acquisition of @AviziaHealth by @Amwell! These two companies are creating the world's leading #telehealth company, and we could not be happier for the team who we've had the honor to work beside for years! #dctech
— Lavrock Ventures (@LavrockVC) April 30, 2018
Last year, Avizia made an acquisition of its own, bringing on virtual care company Carena and announcing plans to add its Seattle office.
UPDATE (9:35 a.m., 5/1/18)
In a phone interview on Monday, Avizia CEO Mike Baird said becoming part of American Well presents the opportunity to scale across multiple kinds of treatment.
“You’ve got almost 150 million patients covered through the payer networks that American Well has and now we can bring more options to them as well,” he said.
Baird said the combined company plans to keep Avizia’s office in Reston, as well as its location in Seattle.
“While technology is a part of this, it’s ultimately about the people,” he said, adding that Avizia has “150 ppl that have some of the most depth and experience of telehealth anywhere in the planet.”
On building a company in the D.C. area, he said that the “tight-knit” tech community offered lots of support, from NextGen to Mindshare, the program supporting dozens of CEOs.
Baird said the cofounders will also remain with the company, but their future roles are still under discussion.-30-
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