Teladoc Health, a leading provider of virtual health care services, has made a strategic move in the mental health space by acquiring UpLift, a digital mental health company, in a deal worth $45 million. The acquisition, which closed on April 30, will further strengthen Teladoc’s position in the virtual mental health services sector and enhance its ability to offer in-network care to its users.
UpLift, known for its virtual therapy and psychiatry services, has established payer partnerships covering over 100 million lives and boasts a network of approximately 1,500 mental health clinicians. This acquisition will enable Teladoc’s digital mental health entity, BetterHelp, to expand its offering by providing in-network care to its users. BetterHelp, the largest cash-pay digital mental health provider, has been looking to increase its adoption of payer contracting and other business-to-business strategies within the digital behavioral health space.
Chuck Divita, CEO of Teladoc Health, sees the acquisition as a way to address the main barrier faced by potential BetterHelp clients – out-of-pocket costs. By leveraging BetterHelp’s consumer expertise and market position, Teladoc aims to provide more options for individuals to access mental health services, including the ability to use insurance coverage through BetterHelp’s relationship with UpLift.
Kyle Talcott, founder and CEO of UpLift, will continue in his role and oversee the care quality, provider network, and payer contracting for the company. Therapists serving BetterHelp will also have the opportunity to be considered for inclusion in the benefits coverage network, based on their requirements and interests.
Teladoc Health paid $30 million in cash to acquire UpLift, with an additional $15 million in contingent earnouts included in the deal. UpLift generated approximately $15 million in revenue last year and had previously made strategic acquisitions itself, including TAO Connect and Minded.
UpLift had secured an $11 million funding round in July 2023, bringing its total funding raised to around $22 million. Ballast Point Ventures led the 2023 funding round. On the Teladoc Health side, BetterHelp has seen financial challenges, while the overall mental health services within the Teladoc virtual health care offering have experienced growth.
Overall, the acquisition of UpLift by Teladoc Health marks a significant step in expanding access to virtual mental health services and further solidifies Teladoc’s position as a leader in the digital health care space. With a focus on providing affordable and accessible mental health care, this partnership has the potential to positively impact millions of individuals seeking support for their mental well-being.
