Teladoc Health has won Catapult Health on a national contract worth $65 million to enhance its ability to detect early health conditions. The virtual care provider announced the acquisition on Wednesday, and was expected to close in the first quarter of this year.
The deal comes five years after Teladoc purchased the $18.5 billion Livongo. This is a move to rebuild personalized digital healthcare. Teladoc Health shares rose almost 6% on Wednesday after the announcement.
Catapult Health offers a home wellness exam where users can check their blood pressure, collect blood samples, collect log screening details, and virtually meet with nurse practitioners. Teladoc sees this as a way to improve preventive care services. Once the transaction is complete, Catapult will operate under Teladoc’s integrated care segment, and the company is working to expand.
Teladoc CEO Chuck Divita highlighted the strategic profits of the transaction.
“The capabilities of Catapult Health help us improve our strategy in meaningful ways to unleash greater value from increasing access to convenient, impactful wellness and preventative care,” Divita said. says he.
While Catapult has generated $30 million in revenue over the past year and serves 3 million people, Teladoc reports that it has over 93 million members.
Catapult CEO David Michel sees the deal as an opportunity to reach more patients.
According to a CNBC report, Michelle said in a statement, “Together with Teladoc Health will help us accelerate our impact and promote our shared mission to empower healthier lives.” “
The acquisition also comes as Teladoc works to regain momentum after a challenging few years. The $18.5 billion Ribbongo deal in 2020 once brought Teladoc’s total corporate value to $37 billion, but its stock fell sharply, bringing its market capitalization below $2 billion.
Last April, the company announced the sudden departure of Jason Golevich, a longtime CEO who had led Teradoc since 2009. In June, Devita took over as CEO in June, focusing on relocating the company for sustainable growth.
Catapult acquisitions could indicate a broader trend in digital health integration as companies move priorities from growth to profitability. Transcarent, a health startup led by Livongo founder Glen Tullman, recently announced a $621 million deal to make Accolade private.
Founded in 2002, Teladoc Health promotes millions of virtual health visits in 175 countries through its unique Teladoc Health Medical Group and partners with thousands of hospitals, health systems and physician practices around the world. Masu. It is also ranked number one in the consumer Telehealth provider by JD Power.
With this latest acquisition, Teladoc has doubled its preventive care. This is a space where we want to strengthen our position amid ongoing challenges in the digital health industry.
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