WebMD has bought Seattle health software startup Avado.
Avado was founded three years ago by several veteran startup entrepreneurs and launched its online patient-relationship management platform just over a year ago.
Financial terms weren’t disclosed but it was a positive exit, according to Avado Chief Executive Dave Chase. He’ll continue leading the 12-person team in Seattle as a satellite engineering center for New York-based WebMD.
“We’re thrilled with the outcome,” he said.
Avado’s technology complements WebMD’s efforts to connect patients to healthcare providers, WebMD executives said in a release.
“Our acquisition of Avado demonstrates WebMD’s commitment to playing a leading role in the emerging patient relationship management space because we believe that connectivity has the potential to make the delivery of care more efficient and improve patient outcomes,” David Schlanger, WebMD chief executive, said in the release.
Avado likely sold for more than the $2 million it raised to launch the company, half from angel investors and half from the founding team.
Chase led Microsoft’s healthcare business until 2003 and then worked with several startups before co-founding Avado with Bassam Saliba. Both are staying with WebMD.
“We’re going to essentially build a big business around what we have, leveraging the assets of WebMD,” Chase said.