DarioHealth announced that it entered into an agreement to acquire digital health company PsyInnovations for up to $30 million.
PsyInnovations develops the wayForward behavioral digital health platform with AI-enabled screening to triage and navigate members to specific interventions, digital cognitive behavioral therapy (CBT), self-directed care, expert coaching and access to in-person and telehealth provider visits, according to a news release.
Currently, wayForward provides its full suite of digital behavioral health services to approximately 20,000 members and 20 self-insured employers.
New York-based DarioHealth expects its acquisition of PsyInnovations and the wayForward platform to supplement its platform of digital therapeutics aimed at more easily changing behavior. DarioHealth’s platform covers diabetes, hypertension, pre-diabetes, musculoskeletal and behavioral health.
“Dario is a strong, flexible AI-driven platform that allows for new offerings to be seamlessly added to our open architecture,” DarioHealth CEO Erez Raphael said in the release. “Over the last year, we have consistently stated our desire to provide a suite of best-in-class solutions for multiple chronic conditions on one platform, including behavioral health as a top priority. We are excited to deliver on our stated goals. We believe the wayForward offering and management team will be great, synergistic additions to our technology foundation.”
DarioHealth agreed to pay $30 million in the acquisition, providing $25 million at closing with a future contingent payment of up to $5 million if behavioral health revenues exceed a certain threshold in 2022.
The upfront payment will be comprised of $6 million in cash and $19 million in shares of DarioHealth’s common stock. Dario believes its balance sheet will remain healthy following the acquisition.
In addition to acquiring the platform, DarioHealth will welcome the wayForward team, including its two founders, CEO Ritvik Singh and chief clinical officer Dr. Navya Singh, to its team.
“We are excited to join Dario. wayForward was started with the mission to bring precise, readily available and cost-effective behavioral healthcare to all those in need. We believe that combining our platform with Dario’s best-in-class solutions for chronic disease will allow us to provide an industry-leading product with superior outcomes and member experience and continue on our mission; now with an expanded client base. The experience of their team and existing sales & marketing infrastructure will help accelerate sales, reduce customer acquisition cost and maximize the value of our platform,” Ritvik Singh said. “More importantly, the integrated platform will benefit patients who now have the opportunity to utilize the effective combined Dario/wayForward solution for multiple chronic conditions in a convenient digital experience.”