Teladoc Health Bolsters Integrated Care Strategy with Catapult Health Acquisition

Teladoc Health (NYSE: TDOC), the global leader in virtual care, has announced its plans to acquire Catapult Health, a leading provider of virtual preventive care services. The acquisition, valued at $65 million in cash with an additional $5 million in potential earnout consideration, aligns with Teladoc Health's integrated care strategy and aims to enhance its preventive care and chronic care management capabilities. The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions.

Catapult Health's innovative approach to patient-centric at-home diagnostic testing, coupled with its high-touch engagement and clinical support model, complements Teladoc Health's industry-leading suite of integrated solutions. With hundreds of employer customers and more than three million covered lives, Catapult Health is recognized for its strong customer satisfaction, clinical outcomes, and cost savings. The company's VirtualCheckup program has demonstrated significant health impact, with 30% of members discovering high blood pressure and 28% learning they have prediabetes for the first time.

The acquisition of Catapult Health supports Teladoc Health's integrated care segment strategy, focusing on four key objectives: growing membership and use of services, leveraging clinical strength and product breadth to deepen the impact on healthcare outcomes, expanding its international business, and advancing its scaled mental health position. By integrating Catapult Health's capabilities, Teladoc Health aims to improve early detection of health conditions, connect its members with high-quality care, and deliver better health outcomes in care management.



Key financial aspects of the acquisition include:

* A valuation of approximately 2.2x Catapult Health's trailing twelve-month revenue of $30 million as of Q3 2024.
* Meaningful cross-selling opportunities across Teladoc Health's 93-million-member base, accelerating revenue growth while reducing customer acquisition costs.
* Potential cost savings and efficiency gains through the integration of Catapult Health's technology stack, creating a more cohesive virtual care experience.
* Performance guarantees that place full program fees at risk for improvements in key hypertension, diabetes, and weight management measures, demonstrating Teladoc Health's commitment to delivering clinical outcomes and helping members meet their health goals.

The integration of Catapult Health's VirtualCheckup program enhances Teladoc Health's preventive care and chronic care management capabilities by:

* Filling a critical gap in Teladoc Health's virtual care ecosystem with at-home diagnostic testing, enabling more comprehensive health assessments and early detection of health conditions.
* Providing seamless enrollment and care pathway automation, reducing friction in patient care journeys and making it easier for members to access the care they need.
* Enabling data-driven care coordination through lab-confirmed A1c values, allowing for more precise population health management and care gap closure.

These enhancements bring several potential benefits for customers and members, including improved health outcomes, increased customer satisfaction, cost savings, cross-selling opportunities, and a stronger competitive position. By leveraging these financial aspects and technological capabilities, Teladoc Health can continue to grow its membership base, deepen its impact on healthcare outcomes, and expand its international business, ultimately driving long-term value for shareholders.

In conclusion, Teladoc Health's acquisition of Catapult Health represents a strategic move to advance its integrated care strategy, enhance its preventive care and chronic care management capabilities, and create meaningful value for customers and members. By leveraging Catapult Health's innovative at-home diagnostic testing, high-touch engagement, and clinical support model, Teladoc Health can improve health outcomes, increase customer satisfaction, and drive long-term growth.