San Francisco-based Commure, a company specializing in healthcare software to improve organizational efficiency, recently announced its acquisition of Augmedix, a provider of AI-enabled clinical workflow and documentation tools.
The $139 million deal will result in Augmedix becoming a wholly-owned subsidiary of Commure, taking the company private. This acquisition aligns with Commure’s strategic goals and aims to enhance its capabilities in healthcare technology.
Since its inception in 2012, Augmedix has focused on innovating automated medical scribing and clinical documentation. It currently serves over 20 major health systems and numerous other care sites. The acquisition will see Augmedix stockholders receiving $2.35 per share in cash.
Augmedix CEO Manny Krakaris expressed optimism about the merger, emphasizing the potential to scale ambient documentation solutions and integrate advanced features and AI into their product suite under Commure’s umbrella.
Augmedix, initially known for developing clinical applications for Google Glass, quickly attracted significant funding from venture capital firms like McKesson Ventures. The company has since shifted its focus to broader AI-enabled tools aimed at reducing the clinical documentation burden.
Despite a recent decline in its stock price, due to a slowdown in provider purchasing commitments and a downgraded revenue outlook, Augmedix reported a 40% revenue growth in Q1.
The acquisition by Commure is seen as a strategic move to allow both companies to concentrate on their complementary technologies and better serve healthcare providers.
Commure CEO Tanay Tandon highlighted the potential to enhance physician productivity through AI-based ambient scribing and revenue cycle automation, projecting support for over 3 million physician appointments this year. Tandon noted significant productivity savings for providers using Commure and Augmedix’s tools.
Looking ahead, the combined company aims to revolutionize provider operations, promising substantial reductions in documentation time for physicians and significant productivity gains.
Commure plans to continue announcing new developments in their product suites, reinforcing their commitment to transforming healthcare provider operations and improving the clinician experience across their partnered systems.
