Congratulations to our friends at Athelas: Celebrating their $6B Merger with Commure

October 30, 2023

Congratulations are in order for our friends at Athelas, Inc., a forerunner in enterprise healthcare software, who have completed their merger with Commure, Inc. This marks a pivotal milestone in the healthcare sector, and Percipio Business Advisors is proud to have contributed to this transformative journey.

Our Role

Under the leadership of Justin Niederklein, CPA, Percipio Business Advisors worked alongside Athelas’ executive team, finance and accounting departments, and attorneys, to manage the due diligence process, provide insight on deal structure and negotiation, and to coordinate closing activities.

“I was able to help Daniel [Brian] and Athelas out in the past with a handful of smaller acquisitions as the Company positioned itself in the ever-changing healthcare sector,” said Justin.

“In those deals, we were representing Athelas on the buy-side, so our role was focused on the financial due diligence of the Targets, LOI and definitive agreement negotiation, closing activities, and purchase price adjustments. So naturally, I was honored and excited when Daniel called me up again to see if I was interested in helping Athelas out again on a merger of equals. It has been very cool to see how far Athelas has come in the past couple of years as a leader in the healthcare tech space, and after a combination with Commure, I think Athelas and Commure will become household names. It is very exciting to be a part of it.” 

“Justin and his team delivered for us at a level I’ve never seen from a consultant,” said Daniel Brian, General Counsel of Commure.

Daniel continued, “They took extreme ownership throughout the merger process, to the point where I lost track of the number of all-nighters we pulled together. Utilizing Percipio, we completed the merger under budget, on schedule, and achieved 100% of our merger objectives. I cannot recommend Justin and Percipio strongly enough.”

The Future of Athelas

After successfully merging with Commure, Athelas is poised for extensive growth and innovation. There are multiple arenas where the newly formed entity is expected to make a considerable impact.

Tackling the Administrative Overload in Healthcare

One of the most glaring issues in American healthcare is the $1 trillion spent annually on administrative tasks. With Athelas’ expertise in Revenue Cycle Management (RCM) and Remote Patient Monitoring (RPM), the company is uniquely positioned to alleviate some of this financial burden.

By optimizing billing processes and automating administrative functions, Athelas aims to bring efficiency to healthcare providers, ultimately translating into cost savings for the sector.

Streamlining Workflows for Healthcare Providers

Healthcare providers lose valuable time every day due to cumbersome documentation, administrative work, and other non-clinical tasks. Athelas has the tech chops to quickly create clever tools that make paperwork and admin tasks a breeze, and they are already doing so with Scribe, their documentation and workflow AI automation tool.

Leveraging Commure’s Enterprise Software

Commure’s enterprise software already serves some of the largest health systems in the country. Products like Commure Engage, Commure Care, and Commure Perform aren’t just fancy tech—they’re serious time-savers for doctors, nurses, and admin staff.

Combining Athelas’s LLM expertise and Commure’s scaled software and hardware solutions will further drive operational efficiency in health systems.

Fast-Growing Revenue Streams

Individually, the companies have seen 500%+ ARR growth over the past three years, and the merged entity is seeing green with multiple booming revenue lines— RCM, RPM, Workflow Automation, Scribing, you name it.

The game plan is simple: keep growing those revenue streams to build a business that’s as resilient as it is dynamic, ready to meet whatever twists and turns come our way in the U.S. healthcare scene.

Long-Term Vision for a Unified Operating System

Both companies have been working towards a unified vision for years, focused on creating an operating system that eliminates the administrative “work tax” that hampers healthcare providers. The big picture here isn’t just about a business deal between Athelas and Commure.

It’s about setting the stage for a game-changing approach to fixing some of the major headaches in American healthcare. The end goal? More affordable, more available, and more informed healthcare made possible by CommureOS.

About Percipio Business Advisors

At Percipio Business Advisors, we offer a multifaceted approach to meeting your business needs, seamlessly integrating services from Mergers & Acquisitions to Business Transition Planning and Transaction Advisory. We offer outsourced and contract CFO, Controller, and bookkeeping services, ensuring you have high-level financial guidance at every business juncture.

Our tax planning, preparation, and compliance services are designed to keep you on the right side of the IRS while maximizing your returns.

We excel in transaction advisory, quality of earnings, and financial due diligence. Our experts guide you through the entire M&A process to make sure your deals align with your business objectives and that you get more than just a handshake at the end of the day.

Business Transition Planning

  • Succession planning
  • Business valuation
  • Business & process improvements
  • Risk mitigation

Transaction Advisory

  • Financial due diligence
  • Cash flow and financial modeling
  • Business structure planning/business reorganization
  • Letter of Intent (LOI) review and negotiation
  • Quality of Earnings studies
  • EBITDA / Seller Discretionary Earnings (SDE) analysis
  • Working capital analysis
  • Purchase/sale agreement review and negotiation
  • Purchase price allocation
  • Post-close due diligence and purchase price adjustments

Simply put, we will manage your accounting, tax services, and M&A needs so that you can concentrate on leading your business to greater heights.

Meet the Percipio Team

Our M&A department is led by Justin Niederklein, CPA, a seasoned expert with a rich background in public accounting and transaction advisory. His practice focus includes working with owners of privately held businesses from the initial stages of potential mergers and acquisitions all the way to post-closing adjustments.

While Justin serves as the lead in our M&A department, it’s worth noting that our team is rounded out by a cadre of highly skilled professionals. These team members bring their own specialized skill sets and experience, enhancing Percipio as a company and ensuring our strategies are both comprehensive and effective.

Final Thoughts

This merger is a turning point for the healthcare industry as a whole. With Athelas and Commure teaming up—boasting a staggering $6 billion valuation, no less—they’re geared up to combat those inefficiencies that have been a thorn in healthcare’s side.

The Percipio Business Advisors are proud to have had a hand in this transaction.

Connect with us today

Justin Niederklein, CPA

Justin Niederklein, CPA

Vice President
531-352-4002 (Direct)
531-352-4001 (Office)

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