Omada Health, a digital health coaching company based in San Francisco, didn’t have to go far to find a perfect target. On May 19, the company announced its acquisition of Physera, Inc., a digital physical therapy provider also based in San Francisco.

In conjunction with the acquisition, Omada raised an additional round of growth capital from Perceptive Advisors, a life sciences investment firm, to finance the deal and support future growth. CNN reported that $37 million of that investment went to the Physera acquisition.

Physera is a musculoskeletal care company that delivers physical therapy and interventions digitally and via telehealth visits to achieve clinical outcomes and reduce spending by preventing avoidable treatments and procedures. It offers video access to a nationwide network of licensed physical therapists for diagnosis and treatment, as well as in-application animations, voice prompts, digital exercise therapy and other guidance.

Omada also uses remote healthcare coaching, providing clinically effective, personalized digital health programs to help individuals with chronic conditions such as type 2 diabetes, hypertension, behavioral health and musculoskeletal issues. The company combines professional health coaching, connected health devices, real-time data and personalized feedback to deliver clinically meaningful results.

The Physera acquisition adds a musculoskeletal component to Omada’s offerings, as more than 75% of patients with type 2 diabetes or obesity report having at least one joint mobility issue.

The use of telehealth was already growing in 2019. Omada’s announcement of the transactions pointed to the growing use of telehealth in recent months, as patients observed the shelter-in-place rules that many states and municipalities ordered. The relaxation of regulations around telehealth, such as reimbursement for conditions such as physical therapy, mental health and chronic conditions, helped to pave the way for this deal.