Teladoc Health Acquires virtual preventive care
company Catapult Health for $65MM
Teladoc Health has signed a definitive agreement to acquire
virtual preventive care company Catapult Health to bolster the
early detection of health conditions and expand into at-home
diagnostic testing.
The two virtual-first companies reached a deal for $65 million,
with an additional $5 million in additional contingent earnout
consideration. Catapult will become a wholly owned subsidiary of
Teladoc. Catapult’s trailing 12-month revenue was $30 million as
of the third quarter of 2024, according to the companies.
The deal is expected to close in the first quarter of 2025,
subject to customary closing conditions.
Catapult Health was founded 15 years ago, first as an on-site
preventive health checkup solution for workers. The company took
its services remote in 2020 after the onset of the COVID-19
pandemic.
Since 2020, Catapult Health has been providing at-home
diagnostics kit to patients so they can collect a blood sample,
check blood pressure and other health screening information.
The company pairs the kit with a telehealth visit with a nurse
practitioner to create a personalized health action plan. Teladoc
claims that 30% of Catapult’s members have discovered high blood
pressure and 28% learned they have prediabetes for the first
time.
Catapult has hundreds of employer customers and offers its
services to more than 3 million covered lives, according to
Teladoc. An independent analysis by a third-party health plan
found that the Catapult Health VirtualCheckup solution delivers
more than $1,400 of cost savings over a three-year period.
Now, Catapult patients will be funneled into Teladoc’s chronic
condition management programs for diabetes, hypertension,
prediabetes and weight management programs if their at-home
screenings indicate they are qualified. Catapult Health’s
clinicians will be able to directly enroll qualifying patients
into Teladoc’s programs and easily refer them to Teladoc’s
primary care and mental health clinicians, according to a press
release.
The M&A market for healthcare companies continues to build on STRATEGIC opportunities and a fragmented market. Consolidations along with unprecedented demand are driving scale across the continuum of care. The strategic corporate buyers and private equity investors remain committed to acquiring strong businesses that are well prepared for a transaction. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering prime valuations and options for management.
Do you know the current market value of your business? We do! We are here to help you plan, prepare, explore and succeed in executing your strategic options.
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