Avado, a Redmond-based startup that aims to do for health-care what Mint has done for personal finance, has been acquired by WebMD for an undisclosed sum.
The deal was announced this afternoon. Avado, with a dozen employees, was founded in 2010 by Dave Chase, Bassam Saliba and John Yii, serial entrepreneurs and Microsoft veterans. The company’s patient relationship management technology lets doctors and patients connect with each other to manage and track personal health care.
Chase, who previously led Microsoft’s health-care technology business, said via email that WebMD was the right fit as an acquirer in part because it’s viewed as a neutral platform and doesn’t pose a threat to the health-care providers, insurance companies or electronic health-records companies involved in the market. That leaves the door open to widespread adoption of the technology.
Other factors included WebMD’s critical mass of users, and its support of Avado’s strategy of providing APIs to developers.
“Avado’s innovative technology and tools will complement, and further accelerate WebMD’s efforts to connect patients with their healthcare providers, which is an important first step toward making connected care a reality,” said Bill Pence, WebMD’s Chief Operating Officer and Chief Technology Officer, in a news release announcing the deal.
Avado announced $1 million in funding in March. Investors include The Partnership Fund for New York City and health tech entrepreneurs and investors. Chase said the Avado system has been used by hundreds of doctors and “many thousands” of consumers.
Avado’s engineering team will remain based in the Seattle region, along with Chase and Saliba, who will report to WebMD’s Pence.