VillageMD, a national provider of primary care in the US, raised USD275m in equity funding. The round was led by existing investor Walgreens Boots Alliance, with participation from Kinnevik AB (publ).
Walgreens Boots Alliance will invest a total of USD 1bn in equity and convertible debt, including USD 250m of the initial equity funding, into VillageMD over the next three years. Kinnevik will own 10 % of VillageMD after the initial USD 275m equity funding.
Including this funding, WBA will in total invest USD 1bn into VillageMD over the next three years to finance a deepened partnership with the company. The company will open 500 to 700 full-service primary care clinics co-located with Walgreens stores in more than 30 US markets over the next five years, with the intent to build several hundred more clinics and enter up to 20 more US markets over time. The clinics will be staffed by more than 3,600 primary care providers, who will be recruited by VillageMD.
VillageMD, through its subsidiary, Village Medical, is a national provider of value-based primary care services. It partners with physicians to provide the tools, technology, operations, staffing support and industry relationships to deliver clinical care and better patient outcomes, while reducing the total cost of care. The Village Medical brand provides primary care for patients at traditional free-standing clinics, Village Medical at Walgreens clinics, at home and via virtual visits. VillageMD and Village Medical have grown to include more than 2,800 physicians across nine markets, are responsible for approximately 600,000 lives and manage USD 4 billion in total medical spend in value-based contracts.