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Healthcare Technology vendor Commure has recently announced its plans to acquire ambient listening specialist Augmedix.
The acquisitor has agreed to purchase Augmedix at a value of $139m, at a share buyout price 169% higher than the volume weighted average price of the stock over the previous 30 days. As such, Augmedix shareholders will receive $2.35 per share in cash when the deal formally closes in Q3 or Q4.
Commure has said Augmedix is set to become a wholly owned subsidiary of Commure, which will take the vendor private upon completion of the deal.
Why we are covering this topic
It is one of the most notable acquisitions of a generative AI vendor so far.
For most in the market partnerships with ambient listening vendors seem to be the preferred route.
The acquisition of Augmedix offers one of the first opportunities to see how generative AI ambient listening vendors are truly valued.
Why it matters
Commure’s decision to partner apparently contrasts with the strategies of many of its peers.
Ambient listening capability is becoming increasingly commoditised. Does this represent a way out of a potential race to the bottom for Augmedix?
Commure’s actions could spark a flurry of comparable actions among any envious peers.
The Signify View
Augmedix, like many younger vendors, is loss making, and in 2023 the vendor made a net loss of $19.6m. Importantly though, the size of the loss fell from the previous year, when it made a loss of $24.8m. Revenues are also increasing, with the vendor bringing in revenues 45% higher in 2023 compared to 2022 at almost $45m, compared to $31m.
