Walmart is acquiring technology and intellectual property from CareZone, a startup that makes it easier for people to manage multiple medications, Walmart confirmed to CNBC.
CareZone got its start in 2010. It develops apps to help people manage their medicines. The company also developed technology that allows users to scan insurance cards and prescription drug labels so patients can more easily figure out what their health plan covers and arrange home deliveries.
Walmart will now take possession of these assets. In addition, 25 to 30 CareZone engineering and product employees are joining Walmart to help the company build out its health and wellness products and services.
Interestingly, Walmart is not buying the CareZone pharmacy, which sorts customers’ medications into pill packs and delivers them by mail. The pharmacy side of the business is still dealing with litigation against pharmacy benefit manager Express Scripts, which removed CareZone from its network over a contract dispute.
Walmart did not disclose the financial terms of a deal, but a source familiar with the deal said Walmart paid about $200 million.
CareZone—both the pharmacy and the technology—has been backed by investors such as Salesforce founder Marc Benioff and the NEA.
In a blog post announcing the deal, Walmart said that in a recent survey of U.S. customers, they found that cost is the top barrier to healthcare for 43 percent of Walmart shoppers, followed by convenience and access. Thus, Walmart is continuing to focus on initiatives that make it easier for people to access affordable healthcare services.
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