New York-based virtual care company Teladoc Health announced it has signed a definitive agreement to acquire virtual preventative care company Catapult Health in an all-cash deal worth $65 million.

The deal 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 works with employers and health plans to offer its platform VirtualCheckup, which includes at-home diagnostic testing and virtual visits with a healthcare provider. 

The company says every participant is also screened for depression and anxiety, and they and their employers receive "in-depth reporting with insight-filled recommendations for personal and population health improvement."

Teladoc said the acquisition supports its integrated care segment strategy, which includes growing its members and services, expanding internationally and advancing its mental health offerings. 

Catapult Health will become a subsidiary of Teladoc, and the deal is expected to close in Q1 2025. 

"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."

THE LARGER TREND

In a statement, privately held company Catapult Health reported revenue over the previous 12 months of approximately $30 million as of Q3 2024.

Publicly traded Teladoc Health 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. 

The remainder of the company's revenue came from its BetterHelp segment, down 10% year-over-year at $256.8 million. 

Teladoc reported Q3 2024 net loss of $33.3 million, or $0.19 per share, and adjusted EBITDA of $83.3 million, down 6% from Q3 of the prior year. 

The company is expected to release its fourth-quarter financial results on Feb. 26 after the market closes. 

Teladoc Health's stock [NYSE: TDOC] is currently trading at around $11.00 per share, down from a high of $293.66 in Feb. 2021. Around this time last year, the company's stock was trading at around $21.61 per share.