The M&A Matchmaking in VC Portfolios

A merger in the works between two struggling startups, online pharmacy Truepill and health test provider LetsGetChecked, signals a growing trend in an era of tough financing: deals between companies that share major shareholders. 

Dublin-based LetsGetChecked has offered to buy California-based Truepill for $500 million in stock and $25 million in cash, according to merger documents sent by Truepill CEO Paul Greenall to investors.

The venture capital arm of UnitedHealth Group, the biggest health insurance firm in the U.S., and its affiliates are “significant stockholders” of the soon-to-be-merged startups, according to private merger documents.