Datavant has announced the acquisition of Ontellus, a Houston-based health records retrieval and claims intelligence company. This acquisition marks the establishment of a fourth business vertical for Datavant, renowned for its robust health data platform that connects and de-identifies patient information across various organizations.

Over the past decade, Datavant has cemented its role in the health data ecosystem, serving key segments including payers, providers, and life sciences firms. With the addition of Ontellus, the company is now poised to enter the legal and insurance vertical, facilitating the seamless exchange of clinical and billing data between healthcare providers and various professional entities, including legal departments and insurance firms.

Although the financial details of the deal, announced on Wednesday, remain undisclosed, Datavant’s CEO, Kyle Armbrester, underscored the strategic significance of this acquisition. He highlighted Ontellus as an ideal candidate due to its advanced technology platform and a seasoned management team, all of whom will remain with the company and receive substantial equity as part of this transition.

Armbrester emphasized that the acquisition aligns with Datavant’s core mission of alleviating the administrative burden on providers by digitizing medical record requests from law firms and life insurance companies. Historically, these requests have been manual and labor-intensive. By streamlining this process, Datavant not only optimizes operational efficiency but also allows its product and engineering teams to concentrate on developing innovative, patient- and provider-centric solutions within hospital settings.

Investing approximately $150 million annually in internal product innovation, Datavant is committed to addressing the pain points faced by its customers through new offerings. The introduction of a fourth revenue vertical is expected to bolster the company’s top-line growth and diversify its client base significantly.

“I believe this market size could rival our health plan and payer segments, potentially evolving into a billion-dollar-plus vertical over the next several years,” Armbrester stated confidently.

The acquisition of Ontellus is not an isolated instance; it marks Datavant’s second acquisition this summer, following its purchase of the real-world evidence platform, Aetion, just last month. Demonstrating an ongoing commitment to growth through strategic acquisitions, Armbrester expressed that the company will continue to seek out merger and acquisition opportunities in various shapes and sizes.