OptimizeRx Corp. said it acquired Somerset, N.J.-based CareSpeak Communications Inc., a provider of messaging services to remind patients about their medications.
Under the deal, OptimizeRx paid $5.5 million in cash, as well as $500,000 in company stock and may make earnout payments of up to $3 million based on certain revenue targets for 2019 and 2020.
In addition, the company incurred its own expenses for the transaction at about $500,000.
The company acquired the shares from CareSpeak CEO Srdjan Loncar, United HealthCare Services Inc., Christopher DiCostanzo and Kresimir Nesek.
Rochester, Mich.-based OptimizeRx operates a digital health messaging platform by using electronic health records to connect drugmakers with healthcare services providers.
OptimizeRx said the acquisition of privately held CareSpeak will expand its reach directly to patients resulting in greater medication adherence and affordability.
CareSpeak is expected to report revenues above $1 million in 2018 and also achieve profitability by the end of the year.
About 25% to 50% of patients worldwide fail to take their medicines as prescribed, the companies said citing a recent study, adding that non-adherence to medications in the U.S. has been associated with 125,000 deaths and 10% of hospitalizations annually.