Teladoc Health (TDOC, Financials) signed a definitive agreement to acquire Catapult Health, a provider of virtual preventive care services, in an all-cash transaction valued at $65 million. Subject to usual closing requirements, the agreement includes up to $5 million in additional contingent consideration and is expected to conclude in the first quarter of 2025.
By expanding preventive and diagnostic capacity, the acquisition aims to enhance Teladoc Health's integrated care approach. Teladoc Health's range of virtual healthcare products will include VirtualCheckup from Catapult Health, which enables at-home diagnostics and virtual consultations with registered nurse practitioners. The company said the acquisition aligns with its broader strategy of increasing membership, expanding service utilization, growing globally, and strengthening its presence in mental health services.
Following the deal, Catapult Health will operate under Teladoc Health's Integrated Care division. With a strong reputation for clinical outcomes and cost savings, the company brings Teladoc Health hundreds of employer clients and more than three million insured lives. Early illness detection has been a success for the VirtualCheckup program, with 30% of participants discovering high blood pressure and 28% identifying prediabetes for the first time. An independent study indicates that over a three-year period, the program saves each participant approximately $1,400 in healthcare costs.
CEO Chuck Divita said the acquisition would enhance value for consumers and provide members with greater access to wellness and preventive care. He emphasized that incorporating Catapult Health's diagnostic and interactive features would help Teladoc Health deliver comprehensive virtual care solutions. David Michel, CEO of Catapult Health, also noted that the partnership will accelerate the company's goal of reducing healthcare costs and improving health outcomes.
By leveraging Catapult Health's technologies, Teladoc Health aims to enhance existing productsincluding offering lab-confirmed A1c readings for more precise enrollment in diabetes and chronic illness management programs. Members requiring additional care will be directly connected to Teladoc Health's virtual primary care physicians and mental health services.
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