Weave Communications Inc., an AI-powered patient engagement and payments platform built for healthcare practices and based in Lehi, has been acquired by investment firm Francisco Partners.
Under the agreement, Weave stockholders will receive $7.40 per share in cash, representing a premium of approximately 34 percent to Weave's closing stock price on Aug. 17. The share price gives the transaction a valuation of approximately $650 million.
Upon completion of the acquisition, Weave will cease to trade on the New York Stock Exchange and become a private company. It will continue to operate under the Weave name and maintain its headquarters in Lehi.
Francisco Partners specializes in investing in technology companies and technology-enabled businesses and is based in San Francisco.
Founded in 2008, Weave is an all-in-one customer experience and payments software platform for small and medium-sized healthcare businesses. Weave's software solutions transform how healthcare practices attract, communicate with and engage patients and clients to grow their business.
"Since our founding in 2008, we have built Weave for a customer most software companies overlook — the independent practices that care for patients in communities across the country. More than 40,000 locations rely on us today," said Brett White, CEO of Weave. "Together with Francisco Partners, we will be able to enhance our ability to invest in our AI platform, deepen our payments and revenue cycle management capabilities and further our vision of a better healthcare experience at every practice. Today's announcement represents a compelling outcome for our stockholders, and we look forward to partnering with Francisco Partners."
"The Weave board conducted a thorough evaluation of strategic alternatives and spoke with a number of strategic and financial parties," said Stuart C. Harvey Jr., chair of the Weave board of directors. "The transaction with Francisco Partners delivers a substantial premium and compelling, certain cash value to our stockholders. The board unanimously determined that this transaction represents the best path forward for Weave and recommends that stockholders vote in favor of the transaction."
"Weave is ideally positioned to capitalize on the healthcare industry's large and growing demand for AI to help optimize their practices and services," said Ezra Perlman, co-president at Francisco Partners. "Its vertical platform sits at the center of how tens of thousands of practices communicate with their patients and collect revenue, a position that is difficult to build and harder still to replicate."
The deal is expected to close during the fourth quarter, subject to approval by Weave stockholders and the receipt of required regulatory approvals.
