Two Twin Cities tech companies that specialize in helping health insurers run wellness programs and communicate with their members have merged, forming what they said will be one of the largest such organizations in the nation.
NovuHealth and Revel Health announced the merger last week. The combined company, whose name will be announced next year, will have a client roster that includes 50 health care clients, including seven of the 10 largest health insurance companies.
NovuHealth CEO Steve Wigginton will lead the combined enterprise, while Revel Health CEO Jeff Fritz will serve as an adviser. Terms of the deal were not disclosed.
Based in St. Louis Park, NovuHealth was founded in 2011 by three brothers with a background in customer-loyalty programs for other industries. Its software helps patients use online and offline customized health improvement measures to do such things as reduce stress, track fitness goals and remember to get annual physicals.
Revel, a software firm based in the North Loop area of downtown Minneapolis, uses similar "health action" technology to prompt people to engage in activities to improve their health.
Both companies have been led by veteran health care entrepreneurs and in recent years have attracted millions in venture capital. The market for such tools has grown as health care organizations try to slash skyrocketing costs, partly by coaxing patients to take charge of their own health.
About two-thirds of those covered by government health plans under Medicare or Medicaid have access to either Novu's or Revel's platforms, according to the firms.
The merger has been in discussion for more than a year, the Minneapolis-St. Paul Business Journal reported, and combined operations will have about 300 employees.
During the next few months, Revel and NovuHealth will begin merging their sales and marketing operations, customer experience, operations and product teams.
"NovuHealth was founded to engage and empower consumers to make choices that lead to healthier lives," Tom Wicka, founder and chairman of NovuHealth, said in a statement. "This merger extends the platform and capabilities of both companies to positively impact the people we serve."