Teladoc buys the rise within the psychological well being firm to extend Betterhelp

Teladoc Health Inc. signage on the bottom of the New York Stock Exchange on December 31, 2024.

Michael Nagle | Bloomberg | Getty pictures

Virtual Care Provider Teladoc HealthIn the past five years, the market value in the past five years has increased that on Wednesday it has increased the mental health company for $ 30 million in cash.

According to Teladoc, the acquisition will help the company to create its fighting Betterhelp segment for mental health. In 2024, sales at Betterhelp decreased by 10% to around 250 million US dollars and has been challenges since the reopening of the economy after the Covid pandemic.

Uplift, which offers virtual mental health therapy, psychiatric and medication management services, generated sales of around 15 million US dollars last year, said Teladoc.

“Betterhelp was founded to eliminate the traditional barriers for therapy and make them more accessible to everyone,” said Fernando Madeira in a statement. “We believe that it will help us to improve this mission – especially for those who want to use their coverage advantages – and at the same time to promote the topline sales growth that help to maintain and expand our effects over time.”

Teladoc said that the deal was closed on Wednesday and the uplift to the Betterhelp segment will be taken into account in the future.

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The Teladoc shares fell by more than 2%in extended trade. The company also announced its results in the first quarter after completing the market and reported a turnover of $ 629.4 million compared to 3%in the previous year. Teladoc reported a net loss of $ 93.0 million or a loss of 53 cents per share.

The increase in increasing is made two months after Teladoc has announced plans for the purchase of preventative Care Company Catapult Health, which offers a wellness test at home for $ 65 million.

The CEO of Teladoc, Chuck Divita, has worked to do the company after four quarters of the decline and an extended slump in the stock price to do the company. When Teladoc 2020 Digital Health Company Livongo took over, it had a combined company value of 37 billion US dollars. At the beginning of 2022, Teladoc took a depreciation of around $ 6.6 billion that were bound to the Livongo deal.

Teladoc now has a market capitalization of just over 1 billion US dollars. The stock fell by about 20% this year.

REGARD: Interview with Teladoc CEO