Datavant has successfully launched a new business vertical by acquiring Ontellus, a leading health records retrieval and claims intelligence firm based in Houston. This strategic acquisition enhances Datavant’s service offerings and positions it as a more formidable player in the healthcare data landscape.
Operating from New York City, Datavant has spent nearly a decade developing a robust health data platform that specializes in connecting and de-identifying patient data across various organizations. With the addition of Ontellus, Datavant now boasts a dedicated legal and insurance vertical alongside its existing sectors focused on payers, providers, and life sciences firms. This strategic move aims to streamline the exchange of clinical and billing data between healthcare providers and any organization that requires such information, including legal departments and insurance companies.
The acquisition was publicly announced on Wednesday; however, neither Datavant nor Ontellus disclosed any financial specifics regarding the deal.
According to Datavant CEO Kyle Armbrester, Ontellus was chosen as an ideal acquisition candidate due to its impressive technology platform and highly experienced management team, all of whom will remain with the company and receive substantial equity stakes. This retention of talent is crucial for maintaining continuity and leveraging Ontellus’s expertise in the evolving healthcare technology arena.
Armbrester emphasized that acquiring Ontellus aligns perfectly with Datavant’s fundamental objective of alleviating the administrative burdens on healthcare providers. By digitizing medical record requests from legal professionals and life insurance companies—traditionally manual and labor-intensive processes—Datavant aims to improve efficiency and reduce operational costs.
This shift toward digitization is expected to empower Datavant’s product and engineering teams to concentrate on developing innovative, patient-centric and provider-centric solutions. Armbrester noted that the company invests approximately $150 million annually in internal product innovation, reflecting its commitment to creating new offerings that directly address the challenges faced by its customers.
With the establishment of this fourth revenue vertical, Datavant is not only aiming to enhance its top-line growth but also to broaden its customer base significantly.
“I believe this market could match the size of our health plan and payer segments, potentially evolving into a billion-dollar-plus vertical within the next few years,” Armbrester stated, highlighting the vast potential for growth.
The acquisition of Ontellus represents Datavant’s second strategic acquisition this summer, following the recent completion of its purchase of the real-world evidence platform Aetion last month. This underscores Datavant’s proactive approach to expanding its capabilities and market reach.
Looking ahead, Armbrester shared that Datavant will persist in seeking opportunities for growth through strategic acquisitions. “We plan to engage in extensive building and expansion efforts, and we are continuously monitoring the market for mergers and acquisitions across all our verticals. Our focus will remain on initiatives that deliver real value to our customers,” he asserted.
Armbrester also pointed out the increasing demand for digital health data and its critical role in initiatives aimed at accelerating clinical trials, improving patient care, and lowering overall healthcare costs. He reiterated his vision for Datavant to become a foundational player in the ongoing modernization of the healthcare sector through enhanced data exchange.
For more updates on the latest trends in litigation, regulation, deals, and financial services, subscribe to Finance Docket, a collaboration between Breaking Media publications Above the Law and Dealbreaker.
