Another digital health company is looking to make the connection between physical and mental health issues. DarioHealth, a company that provides a smartphone-based system to help people monitor their blood sugar, recently made a deal to buy mental health startup WayForward for $ 25 million.
Combined with other DarioHealth programs for diabetes, hypertension and back pain, it would give health provides a solution to treat several conditions, wrote DarioHealth president Rick Anderson, who also manages the company’s operations in North America.
The deal would give DarioHealth a way to triage users’ mental health needs and direct them to providers covered by their health plan or EAP. Once they complete a questionnaire, wayForward automatically routes them to mental health providers, health coaches or self-guided mindfulness tools.
It would also combine the respective customer bases of the two companies. Currently, wayForward works with 20 self-insured employers and approximately 20,000 members.
DarioHealth will pay $ 25 million for start-up to close, including $ 6 million in cash and $ 19 million in shares. It will also pay up to $ 5 million more if behavioral health earnings exceed a certain threshold next year.
WayForward co-founders Ritvik Singh and Navya Singh will join the merged company.
The deal would be reflect the benefits offered by larger competitors Omada and Livongo, who have also integrated mental health into their digital diabetes and hypertension programs. Although DarioHealth, in terms of revenue, is still much smaller.
The company generated $ 3.6 million in revenue in the first quarter of 2021, and posted a net loss of $ 15 million. By comparison, Livongo grossed just under $ 69 million revenue in the first quarter of last year, before its acquisition by Teladoc.
It’s also a slightly different approach for DarioHealth, which previously focused on selling direct to consumers. He recently announced plans to buy Upright, another company with direct roots to consumers offering smartphone-connected sensors for back posture, for $ 31 million.
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