Teladoc Health plans to acquire home diagnostic company Catapult Health for $65 million to bolster its employer and health insurer businesses.
The virtual care company said Wednesday it will add Catapult’s technology to support its existing products. Catapult Health’s clinicians will be able to directly enroll eligible members into Teladoc's programs and refer patients to the telehealth company's mental health and primary care providers.
Related: Digital health companies pitch employers on cutting GLP-1 costs
Catapult, which will become a subsidiary of Teladoc, works with employer and health plan customers to provide patients at-home testing services. Teladoc's acquisition could allow its customers to send home testing kits to patients and confirm their blood sugar levels. Teladoc also said in a release its existing health plan customers could use the information to determine enrollment and coverage decisions.
Adding Catapult is another example of Teladoc's increased focus on adding value for its health plan, employers and provider customers as its direct-to-consumer mental health business has struggled. The company, which hired CEO Chuck Divita in June, saw mixed results from its health plan, employer and provider business segment in the third quarter of 2024.
Last month, Teladoc joined Amazon’s Health Benefits Connector, an arrangement that allows Amazon customers eligible for Teladoc Health’s diabetes, hypertension, pre-diabetes and weight management programs to enroll through the tech giant's website.
The deal between Teladoc and Catapult is expected to close in the first quarter. The final price of the transaction could increase up to $5 million due to additional contingent earnouts, Teladoc said.
Merger and acquisition activity in digital health continues to uptick in 2025. Last month, Transcarent announced it would purchase healthcare navigation and engagement company Accolade for $621 million and H1 said it acquired fellow health data company Ribbon Health.
