SAP has purchased purchased 4.76 million shares of newly issued Class B common stock in Castlight Health, a leading health benefits platform provider. The purchase results in SAP holding 4.7% post-issuance of the currently-outstanding common shares of Castlight, at a price per share of $3.77, for approximately $18 million in cash.
SAP also received a warrant in connection with its stock purchase, under which SAP has the right to purchase an additional 1.9 million shares of Castlight Health Class B common stock subject to certain conditions, at $4.91 per share.
Announced at SAPPHIRE® NOW this week, the two companies plan to enter into a distribution relationship to complement the SAP SuccessFactors® Human Capital Management (HCM) Suite with Castlight’s health benefits platform. CastlightHealth plans to play a pivotal role as an early participant in the development of the SAP® Connected Health platform.
Additional Partnerships with CancerLinQTM and Dharma Platform
In addition to Castlight, the SAP Connected Health platform also announced strategic partnerships with CancerLinQTM (a Subsidiary of ASCO) and Dharma Platform this week.
The SAP Connected Health platform runs on the SAP HANA® platform and includes a growing ecosystem of partners that influence every aspect of the cycle of care, from payers to providers to researchers to life sciences companies.
SAP’s current offerings for the healthcare market include:SAP Connected Health platform, SAP Health Engagement and SAP Medical Research Insights solutions, and partner solutions. Over time, SAP will build new solutions and partnerships on the SAP Connected Health platform.
Dharma Platform helps field healthcare workers and researchers collect, understand and analyze medical data gathered in field situations that are often challenging. The last few years have shown how quickly a health crisis can spread from a small, localized event to a global crisis. Dharma captures data at the source and provides tools to transform information into
CancerLinQ has been working with SAP to develop a health information technology platform that makes a universe of practice treatment insights accessible to clinicians to improve the care of every patient with cancer. A wholly owned nonprofit subsidiary of the American Society of Clinical Oncology (ASCO), CancerLinQ connects and analyzes real-world cancer care data from almost any electronic record source.
Healthcare costs continue to increase globally. In the United States alone, it accounted for 16.4 percent of gross domestic product (GDP) in 2013.Healthcare data, including clinical, genomic, research and healthcare data from the Internet of Things, is expected to increase fivefold by 2020. The exponentially large amount of information offers new opportunities for the strategic use of data in delivering personalized treatments and value-based care.