The Redesign Health ARC Global merger comes with a second transaction attached: the combined company has agreed to acquire AVIA, a US health system digital transformation advisory firm, subject to final regulatory approvals. Announced on 22 October 2026, the two moves would bring together a venture builder, a hospital-based innovation network and an advisory platform used by more than 90,000 health system leaders and staff.
Key takeaways: the Redesign Health ARC Global merger and the AVIA acquisition
- Redesign Health and ARC Global, based at Israel’s Sheba Medical Center, signed a definitive merger.
- The combined company agreed to acquire AVIA; no price or closing date has been disclosed.
- The combined company is valued at about $2 billion, according to an unnamed source cited by one trade publication.
- Brett Shaheen will be chief executive, Stephen Klasko board chair and Eyal Zimlichman vice chair.
- Founding health system partners will be named in the coming months.
Deal terms of the Redesign Health ARC Global merger: what is known
The reports describe a merger of Redesign Health and ARC Global and an agreement by the combined company to acquire AVIA. No price is disclosed for the merger or for AVIA, and no ownership split is given. The only number tied to the transaction is the reported valuation of about $2 billion for the combined company, from an unnamed source. Because headlines describe it as a $2 billion deal, we flag that the figure is a valuation and not a disclosed payment.
The AVIA acquisition is subject to final regulatory approvals. The sources do not say which regulators, or when approval is expected. The merged company’s first public statements are on redesignhealth.com.
Who is AVIA?
AVIA is described as a Chicago-based digital transformation and strategic advisory firm for health systems with more than a decade of work in the US. The companies say its platform is used by more than 90,000 health system leaders and staff to evaluate more than 7,000 digital solutions. For a company that wants to sell AI tools to hospitals, such a platform is a possible route to buyers, which is our observation and not a stated rationale.
Healthcare AI investment context for the Redesign Health ARC Global merger
Acumen Research and Consulting’s report AI in Healthcare Market Size, Share, Forecast Report 2026 to 2035 estimates the AI in healthcare market at USD 41.84 billion in 2025 and USD 1,136.90 billion by 2035, a CAGR of 39.1% for 2026 to 2035. It says North America had about 43% of the market in 2025, Europe about 25%, and Asia Pacific is projected to grow fastest at 42.5% a year. Those estimates explain investor interest in healthcare AI; they are not guidance on the merged company.
Governance of the Redesign Health ARC Global merger
- Chair: Stephen Klasko, former Jefferson Health president and chief executive.
- Vice chair: Eyal Zimlichman, founder and president of ARC Global and Sheba’s chief transformation and innovation officer.
- Chief executive: Brett Shaheen, currently chief executive of Redesign Health.
- Network leadership: Yitshak Kreiss, director general of Sheba Medical Center, is named in one report as steering the international health system network.
The sources do not describe board composition beyond these roles.
Questions hospital boards may ask about the Redesign Health ARC Global merger
The questions below are our own, based on how similar partnerships are usually examined, and are not drawn from the sources:
- How will equity in hospital-originated companies be shared between the hospital and the combined company?
- Who owns the intellectual property created by hospital staff?
- Will AVIA continue to give vendor-neutral advice once it is owned by a company that builds and sells digital products?
- What happens to existing contracts with ARC and AVIA during the integration?
- How will patient data be protected when engineers work inside hospitals?
None of these is answered in the sources we read, and the companies say founding partners will be named in the coming months.
General background: why advisory and venture models are converging
Digital health is described on the WHO digital health page. Health systems are being asked to adopt AI quickly but struggle to evaluate vendors. Advisory firms help them choose; venture builders create the products. Putting the two under one roof is a way to link supply and demand, though it raises questions about independence of advice. We discuss that as an issue to watch and not as a finding. See our Healthcare IT articles.
Our analysis: strengths and open questions
In our assessment, the Redesign Health ARC Global merger has a coherent strategic logic: clinical ideas from ARC’s network, building capacity from Redesign, and a route to buyers through AVIA. The open questions are terms, independence of AVIA’s advice and how the merged company shares value with partner hospitals.
We cannot assess the financial strength of either company, because the sources give no results. We make no forecast and nothing here is investment advice.
What is not disclosed about the Redesign Health ARC Global merger
- Merger terms and AVIA’s price.
- Ownership split among current shareholders.
- Regulatory approvals required and timing.
- Whether AVIA will keep its advisory independence.
- The basis of the valuation.
Risks and caveats of the Redesign Health ARC Global merger
This article relies on company announcements as reported by trade publications and a single unnamed source on valuation. Regulatory approval for the AVIA purchase is pending. Acumen’s figures are third-party estimates. This is news reporting and not investment advice.
What to watch next after the Redesign Health ARC Global merger
- Regulatory approval and closing of the AVIA deal.
- The founding health systems.
- Any disclosure of valuation basis or investors.
- Product launches under the combined company.
FAQ
Is AVIA being acquired as part of the Redesign Health ARC Global merger?
The combined company has agreed to acquire AVIA, subject to final regulatory approvals.
What price is being paid?
No price has been disclosed. A valuation of about $2 billion for the combined company has been reported from an unnamed source.
Who will run the company?
Brett Shaheen will be chief executive.
How we reported this: we relied on company announcements as reported by trade publications and on the Acumen Research and Consulting report cited above, and attributed every figure. Last updated 24 October 2026. This is news reporting and not advice.
