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Marsh & McLennan to Acquire Validate Health to Expand Healthcare Reach

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Key Takeaways

  • MMC's Oliver Wyman plans to acquire Validate Health to strengthen healthcare analytics capabilities.
  • The deal aims to enhance actuarial tools, improve patient outcomes and support ACOs' value-based care.
  • MMC continues its acquisition streak, following recent deals like McGriff Insurance and Arthur Hall.

Marsh & McLennan Companies, Inc.’s (MMC - Free Report) business unit, Oliver Wyman, the global management consulting firm, recently announced its plans to buy Validate Health, a healthcare analytics company that offers value-based care solutions. This agreement is expected to be completed by summer 2025.

This acquisition aims to enhance Oliver Wyman’s actuarial skills and offer healthcare providers and Accountable Care Organizations more powerful, data-driven tools. The deal increases the business’ capabilities with advanced analytics and technology solutions, enabling clients to broaden their market reach, improve profitability, optimize programs, manage risks, secure investments and funding, and improve patient outcomes.

This marks an example of how consulting firms are expanding into technology-enabled services in addition to traditional advisory roles. As the healthcare industry prioritizes value over volume, Oliver Wyman can now provide a more integrated approach by combining consulting expertise with actionable analytics.

This integration will play a vital role in the future. If executed well and everything goes smoothly, it may establish a new benchmark for the intersection of consulting and data in the healthcare industry. In the first quarter of 2025, the Oliver Wyman unit reported revenue growth of 4% year over year to $818 million.

MMC has been actively involved in strategic acquisitions, new product launches and diversification into emerging markets. Some of the notable recent acquisitions include Arthur Hall Insurance, AmeriStar and the $7.75 billion deal of McGriff Insurance Services.

MMC Stock Price Performance

In the year-to-date period, Marsh & McLennan shares have gained 1.8% compared with the industry’s growth of 4.1%.

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MMC’s Zacks Rank & Key Picks

MMC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader finance space are Pagaya Technologies Ltd. (PGY - Free Report) , Heritage Insurance Holdings Inc. (HRTG - Free Report) and Acadian Asset Management Inc. (AAMI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Pagaya Technologies’ current-year earnings of $2.45 per share has witnessed two upward revisions in the past 60 days against none in the opposite direction. Pagaya Technologies beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 12.9%. The consensus estimate for current-year revenues is pegged at $1.2 billion, implying 19.9% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.

The Zacks Consensus Estimate for Acadian Asset Management’s current-year earnings is pegged at $2.86 per share, implying 3.6% year-over-year growth. In the past 60 days, Acadian Asset Management has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $526.8 million, calling for 4.2% year-over-year growth.

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