Even in a booming technology market, sometimes startups implode, and M&A discussions get derailed. A painful case in point: CareSync, a Tampa-based healthcare technology provider, has closed its doors and ended business operations after a last-gasp effort to sell the company fell through.
CareSync, which launched around 2011, combined technology, data and services to improve patient care coordination. The company raised at least $49 million in venture funding during its lifetime, and planned to grow to an estimated 500 employees by the end of 2017.
But somewhere since that time, CareSync’s own health withered — triggering a compete company shutdown yesterday. According to a message on the company’s website:
“After 7 years of working tirelessly and closely with our stakeholders to deliver best-in-class chronic care management products and services, CareSync has discontinued its business operations and closed its facilities in Tampa and Wauchula, Florida.”
Rescue Mission Nearly Saves Company
The company closure comes after CareSync was nearly rescued earlier this week by Shipt founder Bill Smith and additional investors. Smith apparently has deep pockets — having sold Shipt to Target for $550 million in 2017.
Shipt Founder Bill Smith
In a statement to The Tampa Bay Times, Smith confirmed that M&A discussions failed to save CareSync. He said:
“A syndicate of investors, including the Smith Family Office, had intentions to acquire CareSync. We were hopeful that our support could save the company and would ultimately lead to a successful outcome for everyone involved, including the employees. Unfortunately the company ran out of time.”
The resulting CareSync layoffs were particularly dire. Employees received no severance and no COBRA healthcare benefits, according to multiple Tampa Bay media reports. The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their jobs the right to choose to continue group health benefits for limited periods of time under certain circumstances. But the rights to COBRA services apparently died with the company.