lots of money, dollar bills

Honor Technology shook the home care industry Friday, announcing a deal to buy Omaha-based Home Instead for at an undisclosed price. The combined companies represent more than $2.1 billion in home care services and could create the largest player in the $500 billion home care industry.

“This is an incredibly exciting moment as we bring together the preeminent global home care brand and network with the best technology and operations platform to provide an even more amazing caregiver and client experience,” Honor Technology co-founder and CEO Seth Sternberg said in a statement.  “Never before in the history of the world has a company had this much reach or this much investment in technology to solve caring for aging adults, their loved ones and those who care for them.”

San Francisco-based Honor Technology is a six-year-old firm that partners with home care agencies, providing workforce management and technology expertise to improve the in-home experience for patients. The company said the partnership will result in an increase in investment and research into new technologies and will extend Home Instead’s advocacy and social purpose initiatives.

“These two organizations share one passion: transforming the care experience for older adults around the world,” Home Instead CEO Jeff Huber said in a statement. “For years, our commitment has been to create the world we want to grow older in. This transaction adds fuel to that commitment. Combining the strengths of these companies moves our passion from aspirational vision to inevitable impact.”

Merger and acquisition activity has been on a tear this year. There have been 60 deals inked so far, according to M&A advisory firm Mertz Taggart. On Thursday,  LHC Group CEO Keith Myers told analysts during an earnings call that his company is on pace to score a record number of acquisitions this year.

Mertz Taggart managing partner Cory Mertz told McKnight’s Home Care Daily the deal is a significant development in the home care industry.

“Honor has been touting its technology and the impact it can have on the industry,” Mertz said. “And, I think, to some extent, they have been proving that out, but doing so one agency at a time, through partnerships and acquisitions.  The Home Instead acquisition gives them a chance to really prove out their model at scale.”

Honor Technology and Home Instead said the combination will help enhance training opportunities for caregivers.

Under the deal, Home Instead will retain its name and will operate as a subsidiary under Honor Technology. The Honor Care Network will continue under the Honor name.

This is a developing story. Please check back later for updates.

This article originally appeared on McKnight's Senior Living