Telehealth demand is still strong. DarioHealth Corp. (NASDAQ: DRIO), a leading global digital therapeutics company that helps people with chronic conditions, announced last week it was buying PsyInnovations, Inc. (dba wayForward) for $25 million. wayForward shareholders will get an additional $5 million if revenues exceed a certain threshold in 2022.
wayForward is a behavioral health digital platform that includes AI-enabled screening to triage and navigate members to specific interventions, digital Cognitive Behavioral Therapy, self-directed care, expert coaching and access to in-person and telehealth provider visits. The company is currently providing its full suite of digital behavioral health services to approximately 20,000 members and 20 self-insured employers.
The wayForward team, including its two founders, Ritvik Singh, CEO of wayForward and Dr. Navya Singh, Chief Clinical Officer of wayForward, will join the Dario team. wayFoward is expected to be accretive to revenue in 2021 with substantially more contribution to revenue in 2022 for Dario. Sullivan & Worcester LLP is acting as legal counsel to Dario in connection with the acquisition.
DarioHealth is a relatively new player in the healthcare M&A market, first announcing a deal in January of this year. The company bought Upright Technologies Ltd., a leading digital musculoskeletal health company focused on preventing and treating the most common MSK conditions through behavioral science, biofeedback, coaching and wearable tech. The deal was valued at $31 million (2.42x Upright’s 2020 revenue).
Alongside the acquisition of Upright, DarioHealth has announced it had raised $70 million through a private placement of its common stock at $21.35 per share. Investors in the private placement included Nantahala Capital Management, LLC, Perceptive Advisors, Driehaus Capital Management, Farallon Capital Management, Pura Vida Investments, Phoenix Insurance Ltd., More Provident Funds and others.