Teladoc Health to Acquire Catapult Health, Boosting Integrated Care
Teladoc Health (NYSE: TDOC), a global leader in virtual care, has announced that it has entered into a definitive agreement to acquire Catapult Health, a provider of virtual preventive care services. The acquisition will enhance Teladoc Health’s suite of integrated healthcare solutions, incorporating Catapult Health’s innovative patient-centric approach to at-home diagnostic testing, as well as its high-touch engagement and clinical support model.
This acquisition supports Teladoc Health’s integrated care strategy, which was outlined in the company’s presentation at the 43rd Annual J.P. Morgan Healthcare Conference. The strategy focuses on four main objectives: expanding membership and service usage, leveraging clinical expertise and product breadth to improve healthcare outcomes, growing its international presence, and strengthening its position in mental health care. The acquisition of Catapult Health is particularly focused on enhancing early detection of health conditions, improving access to high-quality care for Teladoc Health members, and achieving better health outcomes through effective care management.
Chuck Divita, CEO of Teladoc Health, expressed enthusiasm about the acquisition, stating, “Catapult Health’s capabilities will help advance our strategy in meaningful ways — from giving more members access to convenient and impactful wellness and preventive 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.”
Catapult Health is known for its innovative wellness exam, VirtualCheckup, which enables members to conduct essential health screenings from the comfort of their own homes. The VirtualCheckup kit includes everything a patient needs to collect a blood sample, check their blood pressure, and provide other relevant health information. Following this, members participate in a virtual consultation with a licensed nurse practitioner to discuss their results, identify health risks, and develop a personalized health action plan.
If members are found to have high-risk factors or conditions that require further management, Catapult Health’s clinicians can seamlessly enroll them in Teladoc Health’s existing care programs, such as diabetes, hypertension, pre-diabetes, and weight management. Additionally, patients can be referred to Teladoc Health’s virtual mental health therapists or primary care providers for further support. This integration will allow Teladoc Health to continue expanding its integrated care offerings and enhance its ability to provide holistic healthcare solutions.
David Michel, CEO of Catapult Health, shared his excitement about the merger, stating, “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.”
The deal is valued at $65 million in an all-cash transaction, with an additional $5 million in contingent earnout consideration. Catapult Health reported a trailing twelve-month revenue of approximately $30 million as of Q3 2024. The transaction is expected to close in the first quarter of 2025, pending customary closing conditions. Once the transaction is completed, Catapult Health will become part of Teladoc Health’s Integrated Care segment.
Catapult Health has made a name for itself with hundreds of employer customers and more than three million covered lives, earning recognition for its strong customer satisfaction, clinical outcomes, and cost-saving benefits. Catapult Health’s VirtualCheckup has been highly praised, with an impressive Net Promoter Score (NPS) of 81+. It has also demonstrated effectiveness in detecting health issues early: 30% of members discover they have high blood pressure, and 28% learn they have prediabetes for the first time. Employers and health plans value Catapult Health’s clinical impact, supported by an independent analysis from a third-party health plan, which confirmed that the VirtualCheckup leads to over $1,400 in cost savings over a three-year period.
Teladoc Health’s mission is to empower people to live their healthiest lives by transforming the healthcare experience. With over two decades of expertise, the company leverages proprietary health signals and personalized interactions to improve health outcomes across every stage of a person’s health journey. The addition of Catapult Health’s services will complement Teladoc Health’s existing offerings, enabling it to expand its virtual care services and reach more members, while continuing to provide high-quality care with a strong emphasis on prevention and early detection.
The acquisition of Catapult Health marks a significant milestone for Teladoc Health as it continues to strengthen its position as a leader in virtual care. By integrating Catapult Health’s virtual preventive care services, Teladoc Health aims to offer a more comprehensive healthcare solution that improves access to care, enhances patient engagement, and drives better health outcomes. This acquisition is a step forward in realizing Teladoc’s vision for a more connected, efficient, and accessible healthcare system.
