One of New York’s most prominent telemedicine companies, Teladoc Health, will acquire Dallas-based remote health company Catapult Health, the companies announced on Wednesday.
Teladoc signed an agreement to pay $65 million to bring in Catapult, with up to $5 million in contingent payments. The transaction will add 3 million Catapult customers to Teladoc’s roster of 93 million members and put Catapult’s signature at-home test in Teladoc’s suite of services.
The deal, which is expected to close in the first quarter of 2025, will give the company access to VirtualCheckup, an at-home kit that allows individuals to take a blood sample and blood pressure readings. The test kit comes with a virtual visit with a nurse practitioner. Teladoc hopes the new addition will improve early detection, which can save hundreds of dollars a year, the company said in a statement announcing the deal.
The deal with Catapult is the latest in nearly a decade of voracious acquisition and recent rocky finances for the Purchase-based company. Teladoc saw year-over-year revenue decline 3% to $640 million in the third quarter of 2024, notching a $33 million net loss for the period, according to the latest financial statements.
In 2023, Teladoc laid off 300 employees after merging with digital health company Livongo for $18.5 billion in 2020. It laid off more employees in 2024 and last April CEO Jason Gorevic stepped down after almost 15 years at the helm.
The Catapult acquisition could boost Teladoc’s bottom line. The company brought in close to $30 million in revenue over twelve months as of the third quarter of 2024.
