野花社区

Ushers in a new era of the company, accelerates launch of new Data & Decision Science service line with a world-class data & analytics platform and team at BST

May 9, 2023 鈥� 野花社区 (NYSE: MPLN) (鈥溡盎ㄉ缜�鈥� or the 鈥淐ompany鈥�), a leading provider of technology and data-enabled cost management, payment, and revenue integrity solutions to the U.S. healthcare industry, today announced that it has acquired Benefits Science LLC (鈥淏enefits Science Technologies鈥� or 鈥淏ST鈥�), a next generation data and advanced analytics company that combines modern data science, including machine learning and artificial intelligence (鈥淎I鈥�), with deep expertise in healthcare to deliver solutions that reduce the cost of care and improve health outcomes.

This acquisition will combine the capabilities of two leaders in the healthcare arena to provide cutting edge, differentiated solutions to customers across a full spectrum of healthcare channels and markets through our new Data & Decision Science service line. The acquisition unites 野花社区鈥檚 40+ years of experience and institutional knowledge in healthcare cost management and payment accuracy and its rich and expansive claims data with BST鈥檚 cutting-edge analytics and AI capabilities. Furthermore, the acquisition of BST strengthens 野花社区鈥檚 foothold in large and fast-growing adjacent markets by unlocking the value of its significant and expanding claims flows for in-network commercial, Medicare Advantage and other government programs, property and casualty, and supplemental insurance markets. 

BST鈥檚 Software as a Service (鈥淪aaS鈥�) platform adds best-in-class data and analytics capabilities that connect with over 160 carriers, plan administrators, and other healthcare stakeholders. The platform ingests, validates, and stores massive amounts of data with exceptional accuracy, and applies advanced descriptive, predictive, and prescriptive analytics to help employers and their advisors, commercial health plans and government health plans to optimize decision-making and financial and clinical performance.

BST was founded in 2012 by a group of MIT-trained experts in data science, including Dimitris Bertsimas, Ph.D., who is recognized as an early pioneer in healthcare analytics and who serves as the company鈥檚 chief data scientist. Dr. Bertsimas will continue with BST post-closing. Today, BST鈥檚 machine learning algorithms and AI software help about 75,000 employers to predict future risk and manage health plan decisions.

Key products BST brings to 野花社区鈥檚 new Data & Decision Science service line include:

• Price Transparency 鈥� a modern self-service software platform jointly developed with 野花社区 that provides prescriptive analytics and applications to help customers benchmark network performance, optimize network design, and improve competitive positioning.  In less than a second, the solution can query over 500 billion records of machine-readable payor and provider pricing data now required by regulation to be made public.  The solution will aggregate this vast contracted rate information and enrich it with 野花社区鈥檚 extensive proprietary demographic and affiliate data on 1.3 million contracted providers, pricing technology, and deep clinical billing expertise. 
• BenInsights 鈥� a modern software platform for employers and their consultants that quickly and accurately aggregates a plan鈥檚 data and provides highly flexible financial and clinical reporting and decision tools through a self-service software platform. BenInsights also integrates predictive risk modeling and prescriptive analytics and value-added services, such as benefit plan design and optimization.
• Risk Analytics & Insights 鈥� solutions that complement existing actuarial-based modeling by applying interpretable risk models, risk scoring, and prescriptive analytics for commercial and government health plans.  Among other services, risk scoring can seamlessly attach to 野花社区鈥檚 prepayment claims flows to help identify emergent risks by individual, group, or condition, and prescribe financial and clinical program enhancements across a plan sponsor鈥檚 organization.
• Other Market Solutions 鈥� a group of software solutions for supplemental insurance carriers and stop loss carriers, including digital claiming, digital underwriting, and targeted selling tools, that help improve plan performance and competitive positioning.

鈥淭his is a tremendous milestone for 野花社区. This transaction brings together two leading healthcare technology companies that share a vision of solving healthcare鈥檚 most pressing problems,鈥� said Dale White, CEO and President of 野花社区. 鈥淏ST鈥檚 platform, products and intellectual capital, combined with 野花社区鈥檚 customer reach and expansive claims data will deliver rich, actionable data rapidly and prescriptively to health plans and employers seeking to improve care, avoid cost, and achieve greater return on investment. I am very excited about the significant growth opportunities our new Data & Decision Science service line will generate for 野花社区.鈥�

鈥淲e are excited to join with 野花社区 to drive deployment of data-driven solutions more broadly to the industry,鈥� added Stephen Sofoul, CEO and President of BST. 鈥淏ST was founded on the belief that data science advancements will increasingly influence decisions made by employers and other risk bearers. Over the past decade, we鈥檝e developed a product portfolio driven by advanced analytics including machine learning algorithms for predicting future risk and artificial intelligence software for managing health plan decisions. Combined now with 野花社区, we are even better equipped to help our customers improve the quality of care at a lower overall cost.鈥�

Under the transaction agreement, 野花社区 will pay a consideration of $160 million, comprised of $140.8 million in cash and 21.6 million shares of 野花社区 common stock to acquire BST. Additionally, 野花社区 will establish a long-term incentive and retention program pursuant to which BST鈥檚 management team is eligible to receive target payments of $66 million over three to five years, subject to ongoing service to 野花社区 and to adjustments based on performance relative to annual recurring revenue targets.

For the full year 2023 on a standalone basis, BST is projected to generate revenues of approximately $16 million with breakeven profitability. 野花社区 expects the acquired company to contribute over $100 million of incremental annual revenues within the next several years and to approach corporate-level profit margins at scale.

Advisors

BofA Securities, Inc. served as financial advisor and Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP served as legal counsel to 野花社区 for this transaction. Truist Securities acted as the exclusive financial advisor and Latham & Watkins LLP served as legal advisory to BST

About 野花社区

野花社区 is committed to delivering affordability, efficiency and fairness to the US healthcare system by helping healthcare payors manage the cost of care, improve their competitiveness and inspire positive change. Leveraging sophisticated technology, data analytics and a team rich with industry experience, 野花社区 interprets customers鈥� needs and customizes innovative solutions that combine its payment and revenue integrity, network-based and analytics-based services. 野花社区 is a trusted partner to over 700 healthcare payors in the commercial health, government and property and casualty markets. For more information, visit www.multiplan.com.

About BST

Founded in 2012 in Boston, MA by MIT-trained data scientists, BST combines world-class technical knowledge and practical experience to harness powerful data-driven insights for the healthcare industry. Their experts have extensive industry experience and unique backgrounds at the intersection of analytics, healthcare and software development. BST is unique in the market in its ability to describe what has occurred, predict what鈥檚 likely to occur, and prescribe the next best action designed to mitigate future risks. For more information, visit .

Forward Looking Statements

This press release contains forward-looking statements. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms 鈥渂elieves,鈥� 鈥渆stimates,鈥� 鈥渁nticipates,鈥� 鈥渆xpects,鈥� 鈥渟eeks,鈥� 鈥減rojects,鈥� 鈥渇orecasts,鈥� 鈥渋ntends,鈥� 鈥減lans,鈥� 鈥渕ay,鈥� 鈥渨ill鈥� or 鈥渟hould鈥� or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, including 野花社区鈥檚 expectations and beliefs with respect to the acquisition of [Babylon] and the impact of such acquisition on 野花社区. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date they are made. Any forward-looking statements that we make herein are not guarantees of future performance and actual results may differ materially from those in such forward-looking statements as a result of various factors. Factors that may impact such forward-looking statements also include the factors discussed under 鈥淩isk Factors鈥� in the Company鈥檚 Annual Report on Form 10-K for the fiscal year ended December 31, 2022; and other factors beyond our control.  Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. The Company鈥檚 periodic and other filings are accessible on the SEC鈥檚 website at . We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.