Commure to acquire Augmedix in $139M digital health deal

Healthcare software startup Commure has agreed to acquire artificial intelligence medical scribe company Augmedix for $139 million.

Both companies have deep relationships with health systems. Augmedix provides clinical documentation software to Nashville, Tenn.-based HCA Healthcare, the nation's largest health system, which is also a partner of Commure's. An HCA digital executive sits on the board of Commure, which spawned from a collaboration between Philadelphia-based Jefferson Health and venture capital firm General Catalyst.

"As part of Commure, we believe Augmedix will be well-positioned to scale ambient documentation solutions to even more clinicians and health systems while simultaneously accelerating efforts to infuse more innovative features, integrations, and AI capabilities into our product suite," Augmedix CEO Manny Krakaris said in a July 19 statement.

The all-cash deal is expected to close in the late part of the third quarter or early Q4, with Augmedix shareholders receiving $2.35 per share. The transaction would make Commure, which has its own AI scribe tool, a bigger player in the growing ambient clinical documentation market.

"Together, we believe we can dramatically boost the productivity of every physician in America using language models that transcribe appointments, autonomously code them, and supercharge back-office operations for billing teams," Commure CEO Tanay Tandon said in a July 19 statement.

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