Dive Brief:
- Data analytics company Definitive Healthcare announced on Monday it acquired fellow data firm Populi for $52 million in cash.
- Founded in 2020, Populi offers commercial data to help healthcare providers analyze their markets, understand when patients leave a service area or network for care, and target marketing campaigns. The company’s database includes more than 180 billion healthcare and consumer transactions, according to a spokesperson.
- The acquisition comes weeks after Definitive Healthcare announced a restructuring plan that included layoffs of 42 employees, or about 4% of its workforce, according to a filing with the Securities and Exchange Commission. The company also cut about 6% of its workforce early this year.
Dive Insight:
Definitive Healthcare, which offers commercial data and analytics for biopharma companies, medical technology developers, providers and others in the healthcare industry, has acquired seven companies over the past eight years, according to a Definitive Healthcare spokesperson. During its second quarter earnings call, CEO Robert Musslewhite said the company is “optimistic” it can execute one or two deals per year.
The Populi acquisition will improve Definitive Healthcare's value to its provider clients, allowing them to use data to determine which services or locations to expand across multiple departments, executive chairman and founder Jason Krantz said on the call.
“Our acquisition strategy is to find companies that either provide a new set of proprietary data to enhance our overall offering or provide a new capability to leverage our existing data in new use cases. Populi checks both boxes, and we’re thrilled to have them join the Definitive Healthcare team,” Musslewhite said in a statement.
Definitive Healthcare reported $61 million in revenue during the second quarter, a 12% increase from the prior-year period. But net loss grew to $11.6 million compared with $10.1 million last year, though loss as a percentage of revenue held steady at 19%.
Revenue growth in the second quarter was driven by new business and upselling opportunities, as the company faced increased churn as clients scrutinized spending in the current macroeconomic environment, CFO Rick Booth said on the call.
“That macro impact is toughest for customers in the areas of the economy that are struggling most including emerging biotech, small software and IT and healthcare providers,” he said.
Editor’s note: This story was updated to reflect the full company name on every reference.
