Teladoc Health Inc. signage on the ground of the Latest York Stock Exchange on Dec. 31, 2024.
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Virtual care provider Teladoc Health, which has seen its market value plummet over the past five years, said Wednesday that it acquired mental health company UpLift for $30 million in money.
Teladoc said the acquisition will help the corporate construct out its struggling BetterHelp mental health segment. Revenue at BetterHelp declined 10% to about $250 million in 2024, and has faced challenges because the economy began reopening after the Covid pandemic.
UpLift, which offers virtual mental health therapy, psychiatry and medicine management services, generated around $15 million in revenue last yr, Teladoc said.  
“BetterHelp was founded to remove the standard barriers to therapy and make mental health care more accessible to everyone,” BetterHelp President Fernando Madeira said in an announcement. “We consider joining forces with UpLift will help us advance that mission — especially for those in search of to make use of their coverage advantages — while also driving topline revenue growth that can help sustain and expand our impact over time.”
Teladoc said the deal closed Wednesday, and UpLift shall be factored into the BetterHelp segment going forward.
Shares of Teladoc fell greater than 2% in prolonged trading. The corporate also announced its first-quarter results after market close, reporting revenue of $629.4 million, down 3% year-over-year. Teladoc reported a net lack of $93.0 million, or a 53-cent loss per share.
The UpLift acquisition comes two months after Teladoc announced plans to purchase preventative care company Catapult Health, which offers an at-home wellness exam, for $65 million.
Teladoc CEO Chuck Divita has been working to show the corporate around after four-straight quarters of declining revenue and an prolonged slump within the stock price. When Teladoc acquired digital health company Livongo in 2020, it had a combined enterprise value of $37 billion. In early 2022, Teladoc took a write-down of about $6.6 billion tied to the Livongo deal.
Teladoc now has a market capitalization of just over $1 billion. The stock has fallen about 20% this yr.
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