Teladoc Health, one of the largest telehealth companies in the U.S., announced that it has acquired virtual preventative care company Catapult Health in an all-cash deal worth $65 million.
In a statement, privately held telemedicine company Catapult Health reported revenue over the previous 12 months of approximately $30 million as of Q3 2024.
The acquisition includes an additional $5 million in contingent earnout consideration, meaning Teladoc agrees to pay additional cash or provide equity interests to Catapult should certain events occur after the sale.
Catapult Health will be a subsidiary of Teladoc, and the deal is expected to close in Q1 2025. Catapult Health currently works with employers and health plans to offer its platform VirtualCheckup, which includes at-home diagnostic testing and virtual visits with a healthcare provider.
“This is an exciting time for both companies,” Chuck Divita, CEO of Teladoc Health, said on LinkedIn. “Catapult Health is a natural and valuable complement to our business and shares our vision to make great healthcare more accessible. I look forward to seeing the impact of our work together.”
Teladoc Health, a publicly traded telehealth company, last reported its earnings in the third quarter of 2024, which showed total revenue of $640.5 million, down 3% year-over-year. That included revenue from its Integrated Care segment, up 2% from the previous year at $383.7 million.
Teladoc stated the acquisition supports its integrated care segment strategy, which includes growing its members and services, expanding internationally, and advancing its mental health offerings.