PURCHASE, NY, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Teladoc Health (NYSE: TDOC), 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.
About Teladoc Health
Teladoc Health empowers all people everywhere to live their healthiest lives by transforming the healthcare experience. As the world leader in virtual care, Teladoc Health uses proprietary health signals and personalized interactions to drive better health outcomes across the full continuum of care, at every stage in a person's health journey. Teladoc Health leverages more than two decades of expertise and data-driven insights to meet the growing virtual care needs of consumers and healthcare professionals. For more information, please visit www.teladochealth.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "believe," "project," "estimate," "expect," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, the potential transaction between Teladoc Health and Catapult, including any statements regarding the expected timetable for completing the potential transaction, the ability to complete the potential transaction, the expected effects of the potential transaction (including projected financial information and future opportunities) and any other statements regarding Teladoc Health's and Catapult's future expectations. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, uncertainties as to the timing to consummate the potential transaction; the risk that a condition to closing the potential transaction may not be satisfied; the risk that any regulatory approvals are not obtained or are obtained subject to conditions that are not anticipated by the parties; potential litigation relating to the potential transaction that could be instituted against Teladoc Health, Catapult or their respective directors; the effects of disruption to Teladoc Health's or Catapult's respective businesses; restrictions during the pendency of the potential transaction that may impact Teladoc Health's or Catapult's ability to pursue certain business opportunities or strategic transactions; the effect of this communication on Teladoc Health's stock price; transaction costs; Teladoc Health's ability to achieve the benefits from the proposed transaction; Teladoc Health's ability to effectively integrate acquired operations into its own operations; the ability of Teladoc Health or Catapult to retain and hire key personnel; unknown liabilities; and the diversion of management time on transaction-related issues. Other important factors that could cause actual results to differ materially from those in the forward-looking statements include: (i) changes in laws and regulations applicable to our business model; (ii) changes in market conditions and receptivity to our services and offerings, including our ability to effectively compete; (iii) results of litigation or regulatory actions; (iv) the loss of one or more key clients or the loss of a significant number of members or BetterHelp paying users; (v) changes in valuations or useful lives of our assets; (vi) changes to our abilities to recruit and retain qualified providers into our network; (vii) the impact of and risk related to impairment losses with respect to goodwill or other assets; and (viii) the success of our operational review of the company to achieve a more balanced approach to growth and margin. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Media:
Lou Serio
PR@teladochealth.com
Investors:
Michael Minchak
IR@teladochealth.com
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/f3d83c20-3d03-4e73-a1fa-5689b78df61d
https://www.globenewswire.com/NewsRoom/AttachmentNg/668c1401-5f4b-4b52-a73e-d6e3af303559
