Redesign Health, the New York healthcare venture builder, has merged with ARC Global, the innovation arm founded in 2019 at Israel’s Sheba Medical Center, and the combined company has agreed to acquire AVIA, the Chicago health system digital transformation advisory firm, the companies announced on October 22. The combined company will be led by Redesign chief executive Brett Shaheen. Stephen Klasko, the former Jefferson Health chief executive, becomes chair, and ARC founder Eyal Zimlichman joins as vice chair. Fierce Healthcare reported the combined company is valued at approximately $2 billion, citing a source with knowledge of the deal; the merger’s own financial terms were not disclosed, and Calcalist reported the ARC transaction in the tens of millions of dollars, with Sheba retaining its stakes in portfolio companies and the state receiving about 10 percent of proceeds under its intellectual property agreements. The AVIA acquisition remains subject to regulatory approval.
The pieces are meant to cover the life of a hospital-born product. ARC brings the clinical front end: a clinician-led network across 12 countries, 31 health systems and more than 300 hospitals, which has supported more than 130 startups with a cumulative portfolio value of $6.7 billion and $1.5 billion raised. Redesign brings company-building and engineering infrastructure, including its own AI development staff, and says it has launched dozens of venture-backed companies. AVIA brings distribution, the advisory network through which health systems choose and implement digital tools. Together the organizations say they work with more than 100 health systems across five continents, and products from their networks have reached more than 100 million patients.
The pitch to health systems is ownership: systems that surface problems and test solutions keep equity and financial yield in the technologies that result, rather than buying finished products from vendors. Founding health system members are to be named in the coming months. The honest caveat is the valuation: a $2 billion combined value for a company-creation platform is a claim about future portfolio value, not a price any buyer paid this week, and the disclosed reporting on the ARC leg prices that piece far lower.