The Signaling of Teladoc Health Inc. on the floor of the New York Stock Exchange on December 31, 2024.
Michael Nagle | Bloomberg | Getty images
Virtual Attention Supplier Teradoc healthHe has seen that his market value collapsed in the last five years, he said Wednesday that he acquired the elevation of the mental health company for $ 30 million in cash.
Teladoc said the acquisition will help the company develop its best mental health segment to improve. Income in Betterhelp decreased 10% to around $ 250 million in 2024, and have faced challenges since the economy began to reopen after the Covid pandemic.
UPLIFT, which offers virtual services for mental health therapy, psychiatry and medication management, generated around $ 15 million in revenue last year, said Celadoc.
“Betterhelp was founded to eliminate traditional barriers for therapy and make mental health care more accessible to all,” said Betterhelp president Fernando Madeira, in a statement. “We believe that joining forces will help us advance that mission, especially for those who seek to use their coverage benefits, while promoting the growth of the income of the upper line that will help maintain and expand our impact over time.”
Teladoc said the agreement closed on Wednesday, and the elevation will be considered in the Betterhelp segment in the future.
Teradoc's shares fell more than 2% in extended trade. The company also announced its results of the first quarter after the closure of the market, reporting revenues of $ 629.4 million, 3% less year after year. Teladoc reported a net loss of $ 93.0 million, or a loss of 53 cents per share.
Elevation acquisition is produced two months after Teladoc announced plans to buy Catapult Health of preventive care, which offers a home welfare exam, for $ 65 million.
The CEO of Teladoc, Chuck Divita, has been working to change the company after four consecutive quarters of decline income and a prolonged fall in the price of the shares. When Teladoc acquired the Livongo digital health company in 2020, it had a combined business value of $ 37 billion. At the beginning of 2022, Teladoc received a reduction of approximately $ 6.6 billion linked to the Livongo Agreement.
Teladoc now has a market capitalization of just over $ 1 billion. The action has fallen around 20% this year.
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