Teladoc Health has announced its plan to acquire Catapult Health for $65 million in cash. This agreement aims to enhance Teladoc’s ability to spot health issues early, as Catapult specializes in at-home wellness exams.
Catapult provides a service where individuals can check their blood pressure, collect blood samples, and have virtual meetings with nurse practitioners from the comfort of their homes. Teladoc sees this addition as a key step in expanding its preventative care offerings and making healthcare more accessible.
Following the acquisition, Catapult will become a part of Teladoc’s integrated care sector. This aligns with the company’s goal of increasing membership and service usage within this segment, as discussed earlier at a health-care conference.
In a statement, Teladoc CEO Chuck Divita expressed his enthusiasm, noting that Catapult’s services will significantly benefit members by providing convenient and impactful wellness care. The acquisition is anticipated to finalize in the first quarter of this year.
Catapult has shown strong revenue potential, generating approximately $30 million in revenue in the last twelve months, as noted by Teladoc.
This acquisition comes after a challenging period for Teladoc. The company’s value dropped significantly after its merger with Livongo in 2020, which at the time created a health-tech giant valued at $37 billion. Now, Teladoc’s market capitalization is below $2 billion.
Recently, Teladoc experienced leadership changes as Jason Gorevic, the former CEO, stepped down after a lengthy tenure. Chuck Divita has taken over as CEO and aims to lead the company toward sustainable growth.
As the healthcare landscape continues to evolve, this acquisition could help Teladoc regain momentum and better serve its members with enhanced wellness services.
Check out this related article: Teladoc Health Acquires Catapult Health: Revolutionizing Integrated Care for Better Patient Outcomes
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