SAN FRANCISCO & NASHVILLE, Tenn.--(BUSINESS WIRE)--McKesson Corporation (NYSE:MCK), a leading global healthcare services
and information technology company, and Change Healthcare Holdings, Inc.
(CHC), a leading provider of software and analytics, network solutions
and technology-enabled services, today announced the completion of their
previously-announced agreement to create a new healthcare information
technology company. The new company is named Change Healthcare and
combines substantially all of CHC’s business and the majority of
McKesson Technology Solutions (MTS).
By uniting the majority of MTS’ businesses with CHC, the new company
will inspire a better healthcare system through a broad set of
complementary capabilities that will deliver wide-ranging financial,
operational and clinical benefits to payers, providers and consumers.
From an interconnected and integral position at the center of
healthcare, the new Change Healthcare will be a collaborative catalyst
for accelerating its customers’ and partners’ paths to value-based care
and better engagement with consumers.
“Over the last several years, our industry has experienced a continued
shift toward value-based care, requiring an increasingly
consumer-centered approach to healthcare,” said Neil de Crescenzo, Chief
Executive Officer, Change Healthcare. “Change Healthcare will be
distinctly positioned to leverage its data, analytics and
forward-thinking insights to bring new innovative solutions to payers,
providers and consumers as they strive to achieve the best healthcare
outcomes as efficiently as possible in this new environment.”
“We are thrilled to have completed this combination of two great
organizations. Our nearly 15,000 team members will be working with our
collective customers and partners to provide a stronger, increasingly
collaborative and more efficient healthcare system that enables better
healthcare outcomes,” continued de Crescenzo. “I’m confident that Change
Healthcare’s expertise and comprehensive offering of solutions will not
only deliver near- and long-term value for our customers and partners,
but also help drive the journey toward improved lives and healthier
communities.”
New Leadership Team
In addition to Neil de Crescenzo, previously announced as Chief
Executive Officer of Change Healthcare, the following individuals will
comprise the executive leadership team of the new company:
Randy Giles, EVP & Chief Financial Officer
Rod O’Reilly, EVP &
President, Software and Analytics
Erkan Akyuz, EVP & President,
Imaging, Workflow and Care Solutions
Kris Joshi, Ph.D., EVP &
President, Network Solutions
Pat Leonard, EVP & President,
Technology-Enabled Services
Mark Vachon, EVP, Sales and Operations
Loretta
Cecil, EVP & General Counsel
Alex Choy, EVP, R&D/IT & Chief
Information Officer
Linda Whitley-Taylor, EVP & Chief People Officer
W.
Thomas McEnery, EVP & Chief Marketing Officer
Megan Callahan,
SVP & Chief Strategy Officer
Business Integration Progress
Since the announcement of this transaction on June 28, 2016, both
McKesson and CHC have engaged in measured integration planning within
the appropriate parameters. Now that the transaction has closed,
integration activities will accelerate with a critical focus on ensuring
customer service continuity and accelerating innovation efforts to bring
new solutions to address customer needs. Over the coming months,
integration plans will be shared with customers and partners to ensure
they realize the full value of the new organization in helping them
achieve their objectives.
Brand Strategy and Migration
As previously announced, the new organization will leverage the Change
Healthcare name, but today introduces a new logo, brand positioning and
visual identity to reflect the broader capabilities of the unified
organization. The migration to the new brand will happen over the next
year. All brand migration activities and the timing of those activities
will be handled transparently with the company’s customers and partners.
Information about both MTS’ and CHC’s contributed products and solutions
will be available through www.changehealthcare.com.
Transaction Terms and Structure
McKesson owns approximately 70% of Change Healthcare, with the remaining
equity ownership held by CHC stockholders, including Blackstone and
Hellman & Friedman. The new company is jointly governed by McKesson and
CHC stockholders.
In conjunction with the creation of the new company, Change Healthcare
raised approximately $6.1 billion in debt, which was utilized to fund
cash payments of approximately $1.25 billion to McKesson and
approximately $1.75 billion to CHC stockholders, cover transaction costs
and repay approximately $2.8 billion of existing CHC debt.
“Today marks an exciting step forward to achieve enhanced benefits for
our customers, employees and stockholders,” said John H. Hammergren,
Chairman of the Board, Change Healthcare, and Chairman and Chief
Executive Officer, McKesson Corporation. “I want to thank all of the
employees who made today possible and who will continue the important
work of building an industry-leading company that will help make the
vision of value-based care a reality for payers, providers and
consumers.”
About McKesson Corporation
McKesson Corporation, currently ranked 5th on the FORTUNE 500, is a
global leader in healthcare supply chain management solutions, retail
pharmacy, community oncology and specialty care, and healthcare
information technology. McKesson partners with pharmaceutical
manufacturers, providers, pharmacies, governments and other
organizations in healthcare to help provide the right medicines, medical
products and healthcare services to the right patients at the right
time, safely and cost-effectively. United by our ICARE shared
principles, our 70,000 employees across more than 16 countries work
every day to innovate and deliver opportunities that make our customers
and partners more successful — all for the better health of patients.
McKesson has been named the “Most Admired Company” in the healthcare
wholesaler category by FORTUNE, a “Best Place to Work” by the Human
Rights Campaign Foundation, a top military-friendly company by Military
Friendly®, and a “Best Employer for Healthy Lifestyles” by The National
Business Group on Health. For more information, visit www.mckesson.com.
About CHC
CHC is a leading provider of software and analytics, network solutions
and technology-enabled services that optimize communications, payments
and actionable insights designed to enable smarter healthcare. By
leveraging its Intelligent Healthcare Network™, which includes the
single largest financial and administrative network in the United States
healthcare system, industry stakeholders are able to increase revenue,
improve efficiency, reduce costs, increase cash flow and more
effectively manage complex workflows. Learn more at www.changehealthcare.com.
About Blackstone
Blackstone has been a global leader in private equity since 1985, with
approximately $100 billion of assets under management. Blackstone
uncovers value by identifying great companies and enhancing their
performance by providing strategic capital and outstanding management
talent. Blackstone aims to grow stronger enterprises, create jobs, and
enable its portfolio companies to build lasting value for its investors,
their employees and all stakeholders.
Blackstone is one of the world’s leading investment firms. It seeks to
create positive economic impact and long-term value for its investors,
the companies it invests in, and the communities in which it works. This
is done by using extraordinary people and flexible capital to help
companies solve problems. Its asset management businesses, with over
$360 billion in assets under management, include investment vehicles
focused on private equity, real estate, public debt and equity,
non-investment grade credit, real assets and secondary funds, all on a
global basis. Further information is available at www.blackstone.com.
Follow Blackstone on Twitter @Blackstone.
Risk Factors
This press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, as amended, that are subject to
risks, uncertainties and other factors. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements, including statements regarding the expected
benefits and costs of the transaction; any projections of earnings,
revenues, synergies or other financial items; any statements of the
plans, strategies and objectives of management for future operations;
any statements regarding product or service developments, extensions or
integration; any statements of expectation or belief; any statements
regarding general industry conditions and competition; any statements
regarding economic conditions; and any statements of assumptions
underlying any of the foregoing. Risks, uncertainties and assumptions
include risks related to the possibility that expected benefits may not
materialize as expected; the ability to successfully implement an
integration strategy for the new company; as well as the ability to
ensure continued performance or market growth of the new company’s
products and services. These risks, uncertainties and other factors, and
the general risks associated with the respective businesses of McKesson
and CHC described in the reports and other documents submitted by each
of them to the Securities and Exchange Commission, could cause actual
results to differ materially from those referred to in the
forward-looking statements. All forward-looking statements are based on
information currently available to McKesson and CHC and are qualified in
their entirety by this cautionary statement. You are cautioned not to
place undue reliance on any such forward-looking statements, which speak
only as of the date such statements were first made. Except to the
extent required by law, neither McKesson nor Change Healthcare assumes
any obligation to update any such forward-looking statements or other
statements included in this press release.