Lifespark, a St. Louis Park-based senior services company, announced that it is acquiring a subsidiary of Stella Health, the parent company for Eagan-based Blue Cross and Blue Shield of Minnesota.
The wholly owned subsidiary, Minneapolis-based Livio Health, provides in-home health care services to people with chronic and complex illnesses, according to the announcement. The integration of Livio’s operations and headcount into Lifespark’s systems will take place over the next several months.
Terms of the deal were not disclosed.
In addition to the deal, Stella also provided a cash investment in Lifespark, making it a minority owner in the company. The companies did not disclose how much was invested.
Founded in 2015, Livio Health became the care-delivery division for Stella a year later. No disruption in Livio Health’s patient care is expected, though about a dozen of its about 100 employees are expected to be laid off, according to a Blue Cross spokesperson.
The acquisition is part of Lifespark’s vision to create a “multi-product strategy,” giving seniors better opportunities and resources as they age without raising the cost, Joel Theisen, CEO and founder of Lifespark, said in the announcement. It will also give eligible Blue Cross members more access to Lifespark services, the companies say.
Lifespark, previously known as Lifesprk, had revenue of $50 million in 2021 and $41 million in 2020, according to a Lifespark spokesperson. It has about 900 employees and serves about 15,000 seniors; it expects to add about 1,500 more people served from Livio with the acquisition, the company said.
Last year, the company acquired Bloomington-based senior living operator Tealwood Senior Living. It has raised about $50 million in fundraising to date, the spokesperson said, including a $16.1 million Series A fundraise in 2020 and $20 million Series B raise the next year, led in part by Minneapolis-based UCare, the largest Medicare Advantage provider in Minnesota.
In August, the company, a four-time honoree of the Business Journal’s Best Places to Work awards, reported it had about 572 Minnesota-based employees.
In 2023, the M&A market for healthcare companies continues to build on STRATEGIC opportunities in the current market. The strategic corporate buyers and private equity investors remain committed to acquiring strong businesses that are well prepared for a transaction. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering prime valuations and options for management.
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