Aetna Once Offered To Buy NY Startup ZocDoc For More Than $US300 Million And The Founders Walked Away

Zocdoc SA100 party cyrus massoumi

Insurance company Aetna once offered to buy ZocDoc for more than $US300 million but ZocDoc’s founders walked away, multiple sources tell Business Insider.
ZocDoc was founded in 2007 and has raised nearly $US100 million plus a $55 million convertible note. It is an app and website that helps people schedule in-network doctor appointments right when they’re needed. That means no scheduling months in advance or waiting on hold; practices pay $US300 per month to be listed on ZocDoc.

ZocDoc’s founders, Cyrus Massoumi, Nick Ganju and Oliver Kharraz, are focused on creating a valuable public company, so a source says there was little-to-no interest in Aetna’s offer.

Shortly after ZocDoc rejected Aetna, the insurance giant announced the acquisition of a ZocDoc competitor, Healthagen in December 2011. Healthagen made a similar appointment app called iTriage.

It’s easy to see why Aetna would want to own ZocDoc. Larger companies are realising the importance of lead-generation networks like ZocDoc. Proctor and Gamble acquired a network of doctors, MDVIP, for example.

Walking away from a nine-figure offer couldn’t have been easy, but ZocDoc’s value has only increased since then. In September 2011, investors gave ZocDoc $US75 million at a $US700 million valuation. ZocDoc is now profitable in almost all of its 35 markets. Mobile bookings are up 500% year over year, and website bookings are up 200%.

ZocDoc and Aetna declined to comment for this story.

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