Teladoc Health (a global leader in virtual care) has signed a definitive agreement to buy Catapult Health, a leading provider of virtual preventive care services. And the company plans to utilize Catapult Health’s innovative approach to patient-centric at-home diagnostic testing, and its high-touch engagement and clinical support model, to complement Teladoc Health’s industry-leading suite of integrated solutions.
Building on the 93+ million member base, Teladoc Health’s acquisition of Catapult Health supports the company’s integrated care segment strategy, which was discussed recently during the company’s presentation at the 43rd Annual J.P. Morgan Healthcare Conference.
This strategy focuses on four key objectives: growing membership and service use; leveraging clinical strength and product breadth to enhance the impact on healthcare outcomes; expanding its international business; and advancing its scaled mental health position. The Catapult Health acquisition specifically looks 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.
Through Catapult Health’s at-home wellness exam, VirtualCheckup members receive a simple kit with everything they need to collect a blood sample, check blood pressure, and offer 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.
As 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 in Teladoc Health’s diabetes, hypertension, pre-diabetes, and weight management programs and refer them to Teladoc’s virtual mental health therapists and primary care providers.
The company will also utilize Catapult Health’s technology to support new product enhancements, such as providing customers with lab-confirmed A1c values to base population enrollment and close gaps in care.
Teladoc Health’s agreement to buy Catapult Health was at an all-cash transaction for $65 million, with up to $5 million in additional contingent earnout consideration. And Catapult Health’s trailing 12-month revenue was approximately $30 million as of the third quarter of 2024. The deal is expected to close in the first quarter of 2025, subject to customary closing conditions.
Following the deal’s closing, Catapult Health will operate within the Integrated Care segment of Teladoc Health.
KEY QUOTES:
“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. Catapult Health brings an experienced team and a strong culture of innovation, and we are thrilled to welcome them to Teladoc Health.”
- Chuck Divita, Chief Executive Officer of Teladoc Health
“For over a decade, we’ve been helping customers improve health outcomes and bend the cost curve. Joining forces with Teladoc Health will help us accelerate our impact and advance our shared mission to empower healthier lives.”
- David Michel, Chief Executive Officer of Catapult Health
