Teladoc Health doubles your mental health. Virtual Care Company announced Wednesday it had acquired Uplift, a digital therapy and psychiatry platform, for $30 million in cash.
The move comes just two months after Teladoc revealed plans to buy Catapult Health, a preventive care startup that offers home wellness testing in a $65 million deal.
CNBC reports that the acquisition is intended to reinforce Teladoc’s Betterhelp unit, which is under pressure. The online therapy platform generated revenue of around $250 million last year. This is a 10% decrease.
Uplift, which provides virtual therapy, psychiatric support and medication management, generated approximately $15 million in revenue in 2023. Teladoc said the acquisition will end on Wednesday and its uplift will be folded to move forward.
“Betterhelp was founded to remove traditional barriers to treatment and make mental health care more accessible to everyone,” said Fernando Madeira, president of Betterhelp, in a statement. “We believe that joining forces at Uplift will help us move that mission forward, especially for those looking to use the benefits of coverage. At the same time, we will drive top-line revenue growth that will help us maintain and expand impact over time.”
Investors weren’t excited. Teladoc stocks slid over 2% in after-hours trading following the news. The company also reported first-quarter revenue, down 3% year-on-year to $629.4 million, with a net loss of $93 million, or 53 cents per share.
CEO Chuck Divita is trying to stabilize the ship after a series of rough quarters. Teladoc’s big bet on Livongo in 2020 gave the total company a $37 billion valuation, but hasn’t panned out. Just two years later, Teladoc took the massive $6.6 billion write-up that was tied to the deal.
Teladoc’s market capitalization has now shrunk by more than $1 billion, with stock prices falling by around 20% in 2024.
Founded in 2002, Teladoc still operates one of the largest virtual care networks globally, promoting millions of digital doctor visits in over 175 countries through its own healthcare groups and wide range of partners. JD Power is ranked at the top of the consumer Telehealth providers.
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