2018 Digital Health Recap: $7.6 Billion in M&A Deals, Strategic Acquisitions of Multiple Unicorns (Part II)

Recently, the U.S. healthcare media outlet MobiHealth News reviewed 56 record-breaking mergers and acquisitions in the digital health sector in 2018, among which 13 disclosed their prices, with a total transaction amount reaching $7.6 billion.

MobiHealth News noted that this year, the number and value of mergers and acquisitions in the digital health sector, as well as the high-profile nature of the companies involved, have been noteworthy. For example, in 2018, Amazon acquired PillPack, Best Buy acquired GreatCall, and Roche acquired Flatiron Health. More recently, ResMed acquired Propeller Health, a long-standing key player in the digital health space.

VCBeat (WeChat ID: vcbeat) published Part 1 of its review of the record-breaking 56 M&A deals in the digital health sector in 2018 yesterday.“2018 Digital Health Roundup: 56 M&A Transactions Occurred, with the Largest Single Deal Reaching $2.1 Billion”。

Today, VCBeat presents the second installment to its readers. M&A transactions are listed in descending order by deal size; those with undisclosed deal sizes are ranked by transaction date and appended at the end.

This year, digital health company Wildflower Health acquired Circle. Wildflower Health’s digital health platform helps patients understand their medical benefits and connect with healthcare resources.

Circle is a startup from the Providence St. Joseph Health (PSJH) incubator, founded by PSJH clinicians to provide users with health information and resources, along with various tools and trackers integrated into electronic health record (EHR) systems.

This acquisition will expand Wildflower Health’s healthcare provider network and provide the team with clinical expertise and guidance.

This June, Babyscripts, a virtual care platform specializing in obstetric management, announced the acquisition of iBirth, a pregnancy app provider, to enhance its enterprise product architecture.

As part of the transaction, the iBirth team will join Babyscripts, and Judith Nowlin, CEO and co-founder of iBirth, will assume the role of Chief Growth Officer. However, neither party disclosed the specific terms of the acquisition.

Babyscripts’ platform provides healthcare providers with a digital patient management dashboard that incorporates data collected from connected devices, such as scales, blood pressure cuffs, and patient mobile applications. Leveraging this data, the platform can identify patients who may require follow-up or intervention.

Juan Pablo Segura, President of Babyscripts, stated that the company currently collects an average of 1.5 to 2.5 weight and blood pressure readings per week. By integrating iBirth’s consumer application, Babyscripts anticipates a 500% to 600% increase in weekly app usage, which will provide additional data sources to improve patient outcomes.

At the end of the second quarter this year, SensorRX announced the acquisition of Welltodo, a provider of a migraine health coaching app, for an undisclosed amount. Headquartered in Charlotte, North Carolina, SensorRX owns MigrnX, its own migraine health coaching application, which was launched in 2017 after being tested by the Carolinas Healthcare System.

MigrnX can track users’ migraines and various symptoms, including intensity levels, medication usage and efficacy, and frequency, while also helping users record other health factors such as menstrual cycles. Additionally, MigrnX displays headache patterns and triggers to users.

Welltodo’s migraine health guidance app also leverages data algorithms to help users track migraines and their symptoms, while offering predictive capabilities. Following the acquisition, the app’s features will be integrated into the MigrnX platform.

This July, DoctoLib announced the acquisition of MonDocteur. Both companies are French startups that provide customers with online medical appointment services and were both founded in 2013. Currently, both companies have established a firm foothold in the French and German markets.

Following the merger, the two companies have 55,000 available physicians, with 20 million patients visiting their websites and mobile applications each month.

The acquisition is expected to help DoctoLib continue its growth and expansion in Germany and France, while creating new services for doctors and patients. The company stated that its goal is to fully “lead the European market.”

As Johnson & Johnson continues to exit the diabetes business, the company announced in July that it had sold Calibra to CeQur, with specific transaction terms undisclosed.

CeQur is a 10-year-old company primarily engaged in the research and development of wearable devices for insulin delivery. Currently, CeQur has obtained the global exclusive license for this technology. The company’s flagship product, PAQ, is poised for market launch. PAQ is a three-day wearable insulin pump that provides both basal and bolus insulin for patients with type 2 diabetes.

Calibra Medical was acquired by Johnson & Johnson in 2012. The devices manufactured by Calibra Medical are in the same category as those of CeQur, but they differ in two key aspects: Calibra Medical provides only mealtime bolus insulin delivery and has already received FDA approval. Following the acquisition, CeQur could leverage Calibra Medical’s products to enter the market more rapidly.

This year, internet brand company WebMD acquired the Vitals consumer services division from Mdx Medical. The latter focuses on providing consumers with online tools to connect with clinicians and consists of vitals.com and UCompareHealthCare.com.

The acquisition also includes MedHelp, a tool that provides patients with a platform to connect with peers. Mdx acquired the Vitals Consumer division from The New York Times Company in 2011, and following this transaction, Mdx will retain the Vitals Enterprise business.

This August, PatientPing announced the acquisition of care coordination company ConciergeStat; specific terms of the deal were not disclosed.

As part of the transaction, SmartER will acquire ConciergeStat’s software and customer contact information, along with managerial authority over all its employees. Through this acquisition, SmartER plans to launch a new system called SmartConcierge, as well as the patient communication platform SmartContact and the intelligent visitor access control platform SmartControl.

This year, WellBrain, a platform for addiction prevention and chronic pain management, acquired Medevoked, a behavioral analytics platform; specific transaction terms were not disclosed.

WellBrain is a company co-founded and managed by physicians and former Buddhist monks, dedicated to addiction prevention and chronic pain management through meditation, with the aim of reducing opioid use. Mevoked primarily offers digital applications for the management of perinatal and postpartum mental health conditions.

Following the acquisition, WellBrain will enter the maternal health sector and introduce several new features to its existing platform.

Venture capital firm FitLab acquired a majority stake in Freelytics from co-founders Joshua Cornelius, Mehmet Yilmaz, and Andrej Matijczak, effectively taking over the company. The transaction was not reported as an acquisition at the time; it was only disclosed in a statement included in Freelytics’ funding round announcement.

Currently, the three founders of Freelytics are no longer involved in the company’s day-to-day management and will subsequently exit the company entirely.

In August this year, SOC Telemed announced the acquisition of JSA Health, a behavioral health telemedicine company, and will integrate JSA Health’s services into its acute care telemedicine platform. The terms of the transaction were not disclosed.

SOC Telemed acquired the virtual neurology company NeuroCall in 2017 and is currently the largest provider of tele-neurology services in the United States. Today, SOC Telemed is seeking to expand into the tele-neurology market through its acquisition of JSA Health’s behavioral health team and its newly added network of more than 450 hospitals and health systems.

This year, Mediware, a healthcare intelligent analytics software company, acquired Rock Pond Solutions, a provider of analytics software specializing in home infusion, home medical equipment, and specialty pharmaceuticals. The terms of the acquisition were not disclosed.

Upon completion of the acquisition, Mediware will have the right to use Rock Pond Solutions’ data tools, CareTend BI and CareTend BI for CPR+, thereby helping healthcare providers improve efficiency and profitability.

This year, Harris Healthcare acquired Iatric Systems for an undisclosed amount.

Harris Healthcare is a company that provides healthcare software and services, with products designed to enhance the safety, quality, and efficiency of patient care. Founded in 1993 under the name QuadraMed, the company was acquired by Harris in 2013 and subsequently renamed Harris Healthcare.

Iatric Systems, headquartered in Massachusetts, specializes in providing integration tools to help hospitals optimize electronic health records (EHR) and other IT infrastructure. Currently, Iatric has developed a suite of technologies for EHR optimization, covering areas such as medical device connectivity, security, and interoperability. Following the acquisition, Iatric Systems will operate as an independent business unit within Harris Healthcare.

This year, meditation app developer Headspace acquired Alpine, a voice-enabled AI system, further advancing its development in personalized and conversational products. The financial terms of the deal were not disclosed, and it is understood that Alpine’s team will relocate to Headspace’s San Francisco office.

Currently, Alpine.AI’s technology has been integrated into Amazon Alexa and Google Assistant. Ultimately, the Headspace team aims to leverage voice technology and intermediary services to provide users with an enhanced communication experience.

This November, patient data collection and analytics platform Medopad acquired Sherbit, a Silicon Valley-based health AI startup, aiming to expand its business into the United States. Specific transaction terms were not disclosed.

Sherbit’s health analytics platform comprises more than 30 applications and devices that assist patients with chronic diseases in managing their conditions, and then provide care teams with actionable insights through algorithm-based analytics and customized dashboards.

This September, consumer health software maker Welltok acquired Wellpass, a long-standing key player in the digital and mobile health space that was formed in 2017 through the merger of Sense Health and Voxiva. The specific terms of the transaction were not disclosed.

The acquisition of Wellpass will help Welltok expand its influence in the managed Medicaid and government markets, while also facilitating the development of its technology suite.

Headquartered in the UK, Medopad is a company that collects and analyzes patient data through applications. For the company, the key significance of this acquisition lies in Sherbit’s establishment of important partnerships with many U.S. institutions.

This September, Muse, a meditation app developer, announced the acquisition of Meditation Studio, which is known for its meditation application. The terms of the deal were not disclosed.

Muse’s meditation platform includes a headset and an app. The forehead-worn headset features three reference sensors: two frontal sensors, an LED light, and conductive rubber ear sensors. The device measures brain signals, similar to how a heart rate monitor detects heartbeat.

When users download the Muse app, the headband synchronizes with the system and provides updates and reports on meditation activities; the app also allows users to track their progress.

Mediation Studio is also a meditation app that offers users expert guidance, music to complement meditation sessions, and daily challenges.

As part of the acquisition agreement, Cyd Crouse, co-founder of Meditation Studio, will join the Muse team as Chief Marketing Officer.

This October, personalized healthcare services company Mobile Health acquired patient-engagement healthcare company DoctorBell; the specific acquisition amount was not disclosed.

Headquartered in Singapore, Mobile Health is the creator of MaNaDr, a personalized healthcare service platform. The MaNaDr platform connects users with doctors and their networks, enabling patients to access their medical health records and laboratory results so they can carry this information on their mobile phones. The system is designed to allow patients to schedule appointments and conduct telemedicine consultations via their mobile devices, as well as exchange messages with healthcare providers.

Doctorbell is a cross-platform digital healthcare company founded in 2016 and headquartered in Singapore. The company’s mobile application enables users to locate GP clinics with the shortest wait times through text and multimedia interactions, and to obtain immediate medical advice from general practitioners.

John Tan, Chief Culture Officer of Mobile Health, stated that as part of this transaction, Mobile Health will leverage Doctorbell’s capabilities to utilize artificial intelligence for the triage and management of patients in emergency departments and tertiary care institutions.

This October, Prima-Temp Acquired Kindara - Terms of the Acquisition Not Disclosed

Prima-Temp is a technology company that provides precise core body temperature measurement. Its products can conveniently detect subtle changes in temperature and transmit the data to smartphones. The company’s upcoming product, Priya, is a personal fertility sensor consisting of an app and a vaginal ring. The ring passively monitors core body temperature to help algorithms identify individual ovulation patterns.

Kindara - Prima-Temp is the manufacturer of the eponymous fertility tracking app and the Wink Bluetooth-connected fertility thermometer. The Kindara app and the Wink thermometer play similar roles in helping women track their fertility patterns. The platform also includes a social network where users can create discussion groups and share information.

Prima-Temp views this acquisition as a way to solidify its position in the digital women’s health market, while preparing to launch the Priya personal fertility sensor in 2019.

This October, nursing management software company SilverVue and healthcare quality reporting consultancy Mingle Analytics merged to form Mingle Health, a new entity that combines the strengths of both companies.

SilverVue currently offers a suite of tools designed to manage care transitions, post-acute care, and performance improvement. While both companies collaborate with a diverse range of vendors, each delivers unique value to private physicians and small hospitals.

Following the merger, the new company will integrate Mingle Analytic’s CMS reporting with SilverVue’s practice improvement tools to help providers achieve value-based healthcare.

In late October this year, Carbon Health and Direct Urgent Care announced their merger. Carbon Health is a startup whose mobile platform integrates patients with urgent and primary care services. Headquartered in Northern California, Direct Urgent Care is a direct-to-consumer urgent care provider.

Following the merger of the two companies, seven brick-and-mortar clinics formed a network serving 40,000 active patients. All these clinics are supported by an integrated telehealth application that also facilitates appointment management, payments, EHR access, e-prescribing, and other features, aiming to deliver comprehensive, continuous care.

Medical information company Medici announced the acquisition of healthcare communication platform DocbookMD, with undisclosed financial terms. As part of the transaction, Medici will acquire DocbookMD’s technology assets, employees, and customer contracts.

Both Medici and DocbookMD are based in Austin, Texas, and specialize in healthcare communications. Founded in 2008, DocbookMD has focused on facilitating information exchange among clinicians, while Medici has concentrated on physician-patient communication. The acquisition is expected to help expand Medici’s business scope and provide more services to providers.

GetWellNetwork, a company that provides tools to drive patient engagement and support clinical care teams, acquired the digital engagement platform HealthLoop last November.

“HealthLoop will become GetWellNetwork’s core digital platform; in effect, we have brought the Liangzhi team on board solely to expand HealthLoop’s network,” said Michael O’Neil, CEO and founder of GetWellNetwork. “The GetWellGo modules—similar to those of the HealthLoop platform—will enrich the HealthLoop platform with enhanced features, globalized language and content, and telehealth services.”

This November, Premier acquired Stanson Health for an undisclosed amount.

Stanson Health is a manufacturer of clinical decision support (CDS) tools. Stanson’s software integrates with EHR workflows to facilitate best practices, and its products are currently used by approximately 300 healthcare facilities.

Premier is a hospital and health system alliance that uses analytics and other tools to improve healthcare delivery. “This acquisition complements our core data and analytics offerings, enabling us to extend the reach of our solutions to the points of care where they can have the greatest impact,” said Susan DeVore, President and Chief Executive Officer of Premier.

Switzerland-based Mindmaze announced last November that it would acquire Neuro Motor Innovations Corporation (NMI), a neurorehabilitation technology company, for an undisclosed amount.

As part of the transaction, MindMaze secured a perpetual license to NMI’s rehabilitation technology and appointed Dr. John Krakauer, co-founder of NMI, as its Chief Medical and Chief Scientific Advisor.

This June, Medtronic announced the acquisition of its long-term partner Nutrino, an AI-powered personalized nutrition platform, for an undisclosed amount.

This acquisition will significantly expand Medtronic’s product portfolio for patients with diabetes and provide the company with algorithms to predict glucose responses, which will be integrated into Medtronic’s CGM system.

“Bringing Nutrino and its nutrition-related expertise into our company will enable us to play a significant role in the diabetes industry and accelerate our progress, thereby helping people with diabetes achieve greater freedom and better health outcomes,” said Hooman Hakami, Executive Vice President and President of Medtronic.

In early December this year, Tabula Rasa Healthcare announced that it had agreed to acquire the Australian company DoseMe for an undisclosed amount. Tabula Rasa will complete the acquisition of DoseMeRx in the first quarter of 2019.

Tabula Rasa Healthcare is a digital health company focused on medication safety. DoseMeRx is a platform designed to help clinicians and pharmacists determine appropriate drug dosages for high-need patients. According to the introduction, the platform provides clinicians with pharmacokinetic information about patients, including their ability to metabolize and absorb medications.

Upon the formal completion of the transaction, DoseMeRX will be integrated with Tabula Rasa HealthCare’s medication risk mitigation technology, and the new technology will be utilized for medical purposes.

In mid-December, Change Healthcare announced the acquisition of several key assets—including software, intellectual property, and personnel—from PokitDok, a blockchain-focused API startup. Specific terms of the transaction were not disclosed.

“The acquisition is designed to drive innovation and create a more connected, transparent, and efficient healthcare system in which patients can take control of their own information,” said Kris Joshi, President of Network Solutions and Executive Vice President at Change Healthcare, in a statement. “As a leader in healthcare blockchain, we operate one of the most extensive open API marketplaces. Through PokitDok, we will combine our assets and technical expertise to deliver enhanced capabilities to our customers and further elevate the value of the digital health market.”