Honor Technology rocked the home care industry on Friday, announcing a deal to buy Omaha-based Home at an undisclosed price instead. The combined companies represent more than $ 2.1 billion in home care services and could be the largest player in the $ 500 billion home care industry.
“This is an incredibly exciting moment as we bring the pre-eminent global home care brand and network together with the best technology and operations platform to deliver an even more amazing care and customer experience,” said Seth Sternberg, Co-Founder and CEO of Honor Technology in a opinion. “Never before in the history of the world has a company had so much reach or so much investment in technology to address the care of aging adults, their loved ones and those who care for them.”
Based in San Francisco, Honor Technology is a six-year-old company working with home care agencies providing human resource management and technology expertise to enhance the home experience for patients. The company said the partnership will lead to an increase in investment and research in new technology, and expand Homestead’s advocacy and community initiatives.
“These two organizations share a passion: improving the care experience for older adults around the world,” said Jeff Huber, CEO of Homestead, in a statement. “For years, our commitment has been to create the world in which we want to get older. This transaction strengthens this commitment. The combination of the strengths of these companies takes our passion from an ambitious vision to an inevitable impact. “
The merger and acquisition activity was on the line this year. According to the M&A consultancy Mertz Taggart, 60 deals have been signed so far. On Thursday, Keith Myers, CEO of LHC Group, told analysts on a conference call that his company is well on track to make a record number of acquisitions this year.
Mertz Taggart managing partner Cory Mertz told McKnight’s Home Care Daily that the deal represents a significant development in the home care industry.
“Honor has touted its technology and the impact it can have on the industry,” said Mertz. “And I think they have proven that to a certain extent, but always one agency at a time, through partnerships and acquisitions. The takeover of Homestead gives them the chance to really prove their scale model. “
Honor Technology and Home said the combination will help improve nursing education opportunities.
As part of the deal, Home Statt will keep its name and will be operated as a subsidiary of Honor Technology. The Honor Care Network will continue to operate under the name Honor.
This is a developing story. Please check back for updates later.
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