Teladoc Health to acquire Catapult Health for $65M to expand preventative care offerings

Teladoc Health is acquiring Catapult Health in an all-cash deal worth $65 million to strengthen its early detection capabilities for health conditions. The virtual care provider announced the acquisition on Wednesday, with the deal expected to close in the first quarter of this year.

This deal comes five years after Teladoc’s $18.5 billion purchase of Livongo, a move that was meant to reshape personalized digital healthcare. Shares of Teladoc Health jumped nearly 6% on Wednesday following the announcement.

Catapult Health provides an at-home wellness exam where users can check their blood pressure, collect blood samples, log screening details, and meet virtually with a nurse practitioner. Teladoc sees this as a way to improve its preventative care services. Once the deal is finalized, Catapult will operate under Teladoc’s integrated care segment, which the company has been working to expand.

Teladoc CEO Chuck Divita highlighted the strategic benefits of the deal.

“Catapult Health’s capabilities will help advance our strategy in meaningful ways — from giving more members access to convenient and impactful wellness and preventative care to unlocking greater value for our customers,” Divita said.

Catapult generated $30 million in revenue over the past year and serves 3 million people, while Teladoc reports having more than 93 million members.

Catapult CEO David Michel sees the deal as an opportunity to reach more patients.

“Joining forces with Teladoc Health will help us accelerate our impact and advance our shared mission to empower healthier lives,” Michel said in a statement, according to a report from CNBC.

This acquisition also comes at a time when Teladoc is working to regain momentum after a challenging few years. The $18.5 billion Livongo deal in 2020 once put Teladoc’s combined enterprise value at $37 billion, but the company’s stock has dropped significantly, bringing its market cap below $2 billion.

Last April, the company announced the sudden departure of longtime CEO Jason Gorevic, who had led Teladoc since 2009. Divita took over as chief executive in June, with a focus on repositioning the company for sustainable growth.

The Catapult acquisition could signal a broader trend of consolidation in digital health, as companies shift priorities from growth to profitability. Transcarent, a health startup led by Livongo’s founder Glen Tullman, recently announced a $621 million deal to take Accolade private.

Founded in 2002, Teladoc Health facilitates millions of virtual medical visits across 175 countries through its own Teladoc Health Medical Group and partners with thousands of hospitals, health systems, and physician practices worldwide. It has also been ranked #1 in direct-to-consumer telehealth providers by J.D. Power.

With this latest acquisition, Teladoc is doubling down on preventative care—a space where it hopes to strengthen its position amid ongoing challenges in the digital health industry.