Huge exit deal
Revealed: Current Health was sold for $400m
Chris McCann and Stewart Whiting
Scottish health technology company Current Health was sold last month for $400 million, it has been revealed.
Financial terms were not disclosed when the sale to US-based consumer electronics retailer Best Buy was announced in mid-October.
The size of the deal, which emerged yesterday in an earnings call, makes it one of the biggest exits of a Scottish startup in recent times and Europe’s second-largest digital health exit.
It will represent a big payday for founders Chris McCann and Stewart Whiting who set up the care-at-home technology platform in 2015. Edinburgh-based angel syndicate Par Equity can also expect a huge return after it invested in the business over six rounds.
How we reported the sale last month
The company brings together remote patient monitoring, tele-health, and patient engagement into a single solution for healthcare organisations.
Mr McCann said: “Over the coming decade, significantly more healthcare can be delivered in the home. We started Current Health to make that exciting transition radically easier for healthcare providers to achieve.
“Best Buy has unparalleled physical reach, world-class supply chain logistics, and trusted support services–allowing us to provide a high-touch consumer experience, at scale. We’re excited to join with Best Buy Health to move safe and effective healthcare into the home globally.”
The acquisition follows a $11.5 million (£9 million) Series A funding round in 2019 led by MMC Ventures – which has invested in the business since July 2018 and participated pro rata in the $40 million US Series B earlier this year.
The Series A funding facilitated the essential deepening of the US team, including a non-executive director, Todd Rothenhaus, CFO, John McLean, and Chief Medical Officer, Adam Wolfberg, and propelled partnership agreements with the Mayo Clinic and Dexcom – putting the company in a strong position ahead of the global coronavirus pandemic.
The Series B round provided $40m from US healthcare VCs and existing investors to fund the company’s accelerating growth – with Best Buy approaching the company soon after.
Today, 13 of the largest healthcare systems in the United States and United Kingdom – including Mount Sinai and Dartford & Gravesham NHS Trust – use Current Health to manage patient care, leading to shortened hospital stays, reduced hospital readmission rates, improved patient satisfaction and better patient outcomes.
Bruce Macfarlane, investor, MMC, comments: “MMC is very proud to have partnered with Chris, Stewart and their team from a very early stage.
“It has been a massively exciting journey and a valuable learning experience for us in what it takes to expand in the US, particularly with respect to the US healthcare markets’ ongoing adoption of value-based healthcare.”