Teladoc expands virtual care through $65Mn Catapult deal
NEW YORK, UNITED STATES — Virtual care provider Teladoc Health has announced a definitive agreement to acquire Catapult Health for $65 million in an all-cash transaction, with a potential additional $5 million in earnout consideration.
Revolutionizing preventive care
The acquisition strengthens Teladoc’s preventive care capabilities by incorporating Catapult Health’s innovative VirtualCheckup program. This at-home wellness examination service provides members with comprehensive health screening tools, including blood sampling equipment and blood pressure monitoring devices, followed by virtual consultations with nurse practitioners.
Catapult Health has demonstrated impressive results, with 30% of members discovering high blood pressure and 28% learning about prediabetes through their first checkup. The service has achieved an exceptional 81+ Net Promoter Score (NPS), reflecting high customer satisfaction.
#NEWS: Teladoc Health will acquire Catapult Health, a leading provider of virtual preventive care services. Learn more: https://t.co/lIJvL50fQc. pic.twitter.com/qP7gtPOivs
— Teladoc Health (@TeladocHealth) February 5, 2025
Market expansion and financial overview
Catapult Health reported approximately $30 million in trailing twelve-month revenue as of Q3 2024, while serving over three million covered lives through hundreds of employer customers. The acquisition complements Teladoc’s extensive 93-million-member base.
“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.
Future growth prospects
The merger enables direct enrollment of eligible members into Teladoc’s specialized programs for diabetes, hypertension, pre-diabetes, and weight management. An independent analysis has shown that Catapult Health’s VirtualCheckup delivers more than $1,400 in cost savings over a three-year period.
David Michel, Catapult Health’s CEO, expressed optimism about the merger: “Joining forces with Teladoc Health will help us accelerate our impact and advance our shared mission to empower healthier lives.”
The transaction is expected to close in the first quarter of 2025, with Catapult Health operating within Teladoc’s Integrated Care segment.
The merger aligns with Teladoc’s four key objectives: growing membership and service utilization, leveraging clinical strength, expanding international operations, and advancing its mental health services position.
