Honor Technology, Inc. acquired Home Instead, Inc. on Aug. 6, 2021, in a move that experts predict will have significant effects on the home care industry.

“The acquisition brings together the largest, highest-touch home care network and the leading home care technology and operations platform to transform the professional caregiver and client experience and revolutionize care for older adults,” said a joint press release. “The combined organization represents more than $2.1 billion in home care services revenue and affirms itself as the largest player in the projected $500 billion home care industry.”

Honor and Home Instead will further professionalize the caregiver’s role and use technology to strengthen the relationship between caregiver and client, the release continued. Honor also plans to strengthen its investment in research and development through engineering and technology.

The Home Instead network will operate under the Home Instead name as a subsidiary of Honor.  Financial terms were undisclosed.

Implications for the Industry

An M&A advisory expert pointed to the deal as significant for home care, McKnight’s Senior Living reported.

“Honor has been touting its technology and the impact it can have on the industry,” Mertz Taggart managing partner Cory Mertz reportedly told McKnight’s Home Care Daily. “…The Home Instead acquisition gives them a chance to really prove out their model at scale.”

A Senior Housing News article called the acquisition important partly because substantial capital is becoming available in home care, and more senior living providers are looking to start home care services on their own or through partners.

“The newly combined company could open more doors for providers to partner with an established home care player to power their own programs — or, it may serve as a large new competitor to keep track of as operators go about launching their own in-house home care services,” said the article.