Weave's AI tools make small healthcare practices more efficient.
A tech-focused investment company wants to buy Weave and further develop its platform.
Shares of Weave Communications (NYSE: WEAV) spiked on Tuesday after the artificial intelligence (AI)-powered patient engagement and payments platform for healthcare practices agreed to be acquired by private equity firm Francisco Partners.
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Under the terms of the deal, Weave's shareholders would receive $7.40 per share in cash. That's a premium of about 34% to its stock's closing price on Aug. 17.
The deal values Weave at roughly $650 million.
The transaction is projected to close in the fourth quarter, subject to regulatory and shareholder approval.
Weave primarily serves small and medium-sized healthcare businesses.
"Since our founding in 2008, we have built Weave for a customer most software companies overlook -- the independent practices that care for patients in communities across the country," CEO Brett White said. "More than 40,000 locations rely on us today."
Weave's platform supports patient interactions via voice and text. Its agentic AI-driven system can also assist with scheduling, insurance verification, and other administrative tasks.
Weave is thus well-positioned to benefit from rising demand for AI tools that can reduce healthcare costs and bolster the productivity of medical professionals and their staff.
"Together with Francisco Partners, we will be able to enhance our ability to invest in our AI platform, deepen our payments and revenue cycle management capabilities, and further our vision of a better healthcare experience at every practice," White said.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.