Teladoc Health Inc. (TDOC) shares surged over 5% in pre-market trading on Wednesday, as the virtual healthcare company announced plans to acquire Catapult Health for $65 million in cash plus up to $5 million in contingent earnouts.

The acquisition of Catapult Health, a leading provider of virtual preventive care services, aims to enhance Teladoc's capabilities in the rapidly growing preventive care and chronic disease management market segments.

Through Catapult's innovative VirtualCheckup service, Teladoc will gain access to an at-home wellness exam kit that allows members to collect blood samples, check vital signs, and undergo virtual consultations with healthcare providers. This comprehensive preventive screening could enable earlier detection of health risks and conditions, supporting Teladoc's strategy to improve overall health outcomes.

Moreover, Teladoc plans to integrate Catapult's members into its existing diabetes, hypertension, pre-diabetes, and weight management programs, unlocking cross-selling opportunities and streamlining care management pathways. The company expects this synergy to drive better health outcomes while generating cost savings for customers.