Teladoc Dials Up Virtual Care with $70 Million Acquisition of Catapult

Teladoc Health announced today that it has entered into a definitive agreement to acquire Catapult Health, a provider of virtual preventive care services. Teladoc Health aims to integrate Catapult Health’s at-home diagnostic testing, patient engagement, and clinical support model into its existing suite of integrated healthcare solutions, enhancing its virtual care ecosystem.

Integrated Care Strategy Set to Leverage Clinical Expertise and Grow International Presence

Teladoc Health has agreed to acquire Catapult Health in an all-cash deal valued at $65 million, with the potential for an additional $5 million in contingent earnout payments. As of the third quarter of 2024, Catapult Health reported approximately $30 million in trailing twelve-month revenue. Teladoc Health expects to finalize the acquisition in the first quarter of 2025, pending customary closing conditions. Afterward, Catapult Health will join Teladoc Health’s Integrated Care segment.

The deal aligns with Teledoc’s integrated care strategy, which the company outlined at the 43rd Annual J.P. Morgan Healthcare Conference. This strategy emphasizes four key objectives: expanding membership and service utilization, leveraging clinical expertise and diverse product offerings to enhance healthcare outcomes, growing its international presence, and strengthening its position in the mental health sector. 

“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,” said Chuck Divita, Chief Executive Officer of Teladoc Health. “Catapult Health brings an experienced team and a strong culture of innovation, and we are thrilled to welcome them to Teladoc Health.”

Virtual Checkup to Deliver At-Home Health Assessments with Blood Testing, Monitoring, and Personalized Plans

The acquisition aims to improve early detection of health conditions by integrating Catapult’s at-home diagnostic capabilities and high-touch clinical engagement model into Teladoc’s virtual care ecosystem. Their VirtualCheckup is an at-home wellness exam, providing members with a comprehensive health assessment. The kit includes tools for blood sample collection, blood pressure monitoring, and other key health screenings. After completing the tests, members consult virtually with a licensed nurse practitioner to review results, identify health risks, and develop a personalized action plan.

Catapult’s clinicians directly enroll eligible individuals into Teladoc Health’s chronic condition management programs for diabetes, hypertension, prediabetes, and weight management when they diagnose conditions or risk factors requiring intervention. Additionally, they can seamlessly refer members to Teladoc’s virtual mental health therapists and primary care providers for further support.

Additionally, Teladoc plans to integrate Catapult’s technology to enhance its offerings, including providing lab-confirmed A1c values to refine population health strategies and address care gaps more effectively.

“For over a decade, we’ve been helping customers improve health outcomes and bend the cost curve,” said David Michel, Chief Executive Officer of Catapult Health. “Joining forces with Teladoc Health will help us accelerate our impact and advance our shared mission to empower healthier lives.”

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Denisse Sandoval