- General
- October 27, 2020
- 4 minutes read
PatientPoint, Outcome Eye Merger
Mike Collette, CEO, PatientPoint. Photo credit: PatientPoint PatientPoint, a medical advertising company, is in talks to merge with rival Outcome…
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| Mike Collette, CEO, PatientPoint. Photo credit: PatientPoint |
PatientPoint, a medical advertising company, is in talks to merge with rival Outcome Health in a deal that’ll create the largest advertising network in doctors’ offices in the US, according to a report [paywalled] by Bloomberg. Such a deal would merge two medical advertising companies that are currently controlled by private equity firms, PatientPoint controlled by L Catterton and Outcome Health by Littlejohn & Co.
The intended merger between PatientPoint and Outcome Health could value the combined company at roughly $600 million, Bloomberg reports.
PatientPoint and Outcome Health are medical advertising networks that utilize doctors’ offices to reach patients. PatientPoint is a more established and stable business that was founded over three decades ago, compared to Outcome Health which was founded in 2006 and is the subject of a $1 billion fraud case that brought felony charges against its founders.
It’s such that Outcome Health was once seemingly high-flying and in 2017 raised $600 million in a single funding round that valued the company at more than $5 billion. However, in the aftermath of that fundraising, controversy and lawsuits piled up, with Outcome Health accused of overcharging customers for advertisements, misquoting third-party advertisement analysis, and falsifying documents on advertising performance.
The accusations brought lawsuits from investors and further morphed into a bigger case were four former executives of Outcome, including founder Rishi Shah, were indicted by the US Department of Justice for falsifying ad performance statements to secure bank loans of nearly $1 billion. A court case is still ongoing, with Shah facing up to 30 years in prison if convicted on the charges.
Following Outcome Health’s woes, the company was bought up on the cheap by private equity firm Littlejohn which is now reported to be targeting a merger with rival PatientPoint.
