Teladoc Health has indicated interest in acquiring the preventative care company Catapult Health in an all-cash deal of $65 million.
Catapult Health is a telemedicine app that offers an at-home wellness exam that allows users to check their blood pressure, collect blood samples, log other screening information, and meet virtually with healthcare practitioners.
Teladoc, a virtual care platform said the acquisition will help improve its ability to detect health conditions very early.
The company noted that Catapult will operate within its integrated care segment after the deal closure. At JP Morgan’s healthcare conference in January, Teladoc confirmed it’s actively working to grow the number of users and the use of services within the integrated care segment.
“Catapult Health’s capabilities will help advance our strategy in meaningful ways, from giving more users direct access to convenient and impactful wellness and preventative care to unlocking greater value for our customers”, Teladoc CEO Chuck Divita said in a statement.
In the third quarter of 2024, catapult generated a trailing revenue of $30 million. According to Teladoc. The deal is expected to sell through in the first quarter of 2025.
Teladoc’s acquisition of Catapult follows a challenging period for the company. After acquiring Livongo in 2020, Teladoc’s valuation plummeted from $37 billion to under $2 billion.
In April, long-time CEO Jason Gorevic unexpectedly left the company, and Jason Divita took over in June, vowing to revamp the company for lasting success.
