Teladoc Health, the global leader in virtual care, today announced that it has signed a definitive agreement to acquire Catapult Health, a leading provider of virtual preventive care services. The company plans to leverage Catapult Health’s innovative approach to patient-centric at-home diagnostic testing, as well as its high-touch engagement and clinical support model, to complement Teladoc Health’s industry-leading suite of integrated solutions.
Building on its over 93-million-member base, Teladoc Health’s acquisition of Catapult Health supports the company’s integrated care segment strategy, discussed most recently during the company’s presentation at the 43rd Annual J.P. Morgan Healthcare Conference. The strategy focuses on four key objectives: grow membership and use of services; leverage clinical strength and product breadth to deepen the impact on healthcare outcomes; expand its international business; and advance its scaled mental health position. The Catapult Health acquisition specifically seeks to advance efforts to improve early detection of health conditions, connect Teladoc Health’s members with high-quality care and deliver better health outcomes in care management.
“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,” said Chuck Divita, Chief Executive Officer of Teladoc Health. “Catapult Health brings an experienced team and a strong culture of innovation, and we are thrilled to welcome them to Teladoc Health.”
With Catapult Health’s innovative at-home wellness exam, VirtualCheckup, members receive a simple kit with everything they need to collect a blood sample, check blood pressure, and provide other health screening information, followed by a virtual visit with a licensed nurse practitioner to discuss test results, review key health risks, and create a personalized health action plan.
When Catapult Health’s members are assessed with conditions or high-risk factors that require a health action plan, Catapult Health’s clinicians will be able to directly enroll eligible members into Teladoc Health’s diabetes, hypertension, pre-diabetes and weight management programs, and seamlessly refer them to Teladoc’s virtual mental health therapists and primary care providers.
The company will also use Catapult Health’s technology to support new product enhancements, such as providing customers with lab-confirmed A1c values on which to base population enrollment and close gaps in care.
“For over a decade, we’ve been helping customers improve health outcomes and bend the cost curve,” said David Michel, Chief Executive Officer of Catapult Health. “Joining forces with Teladoc Health will help us accelerate our impact and advance our shared mission to empower healthier lives.”
Key Facts
Teladoc Health has signed a definitive agreement to acquire Catapult Health in an all-cash transaction for $65 million, with up to $5 million in additional contingent earnout consideration. Catapult Health’s trailing twelve-month revenue was approximately $30 million as of the third quarter of 2024. The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions.
Following the closing of the transaction, Catapult Health will operate within the Integrated Care segment of Teladoc Health.
With hundreds of employer customers and more than three million covered lives, Catapult Health is recognized for its strong customer satisfaction, clinical outcomes, and cost savings. Catapult Health members consistently praise the VirtualCheckup experience, reflected in an impressive 81+ Net Promoter Score (NPS). The checkup has shown demonstrable results in the early detection of diseases and health risks, with 30% of members discovering high blood pressure and 28% learning they have prediabetes for the first time. Employers and health plans recognize Catapult Health’s clinical value, supported by an independent analysis by a third-party health plan confirming that the Catapult Health VirtualCheckup delivers more than $1,400 of cost savings over a 3-year period.
NewsBit Bureau