DarioHealth Acquires Musculoskeletal Solution Upright for $31M
What You Should Know:
– DarioHealth, a Livongo competitor acquires musculoskeletal startup Upright for $31 million to expand their chronic condition management capabilities focused on driving behavior change rather than treating the acute problem. This move will more than double revenue and create one of the largest integrated digital health companies in the space.
In addition, DarioHealth rasiess $70 million through a private placement of its common stock priced at the market pursuant to Nasdaq rules.
DarioHealth Corp, a provider of global digital therapeutics (DTx) market, announced it has reached a definitive agreement to acquire digital musculoskeletal (MSK) company Upright Technologies Ltd. for $31M in stock transaction. The acquisition will expand its chronic condition portfolio, currently including self-management of diabetes and hypertension, into musculoskeletal conditions.
DarioHealth Announces Acquisition of Leading Digital Musculoskeletal Company Upright Technologies and $70 Million Financing
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Expands DarioHealth s multi-condition platform into the $213 billion musculoskeletal market and creates one of the most comprehensive digital health platforms
Financing supported by leading health care focused institutional investors, including Nantahala Capital Management, LLC, Perceptive Advisors, Driehaus Capital Management, Farallon Capital Management, Pura Vida Investments, and others priced at market pursuant to Nasdaq rules
Increases membership to more than 150,000 and combined proforma 2020 full-year revenue to more than $20 million
Company to host a conference call today, January 27, 2021, at 8:30 am ET
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DarioHealth announced today that it is expanding its digital chronic-disease-management business beyond diabetes and hypertension with the purchase of Upright Technologies, a musculoskeletal (MSK) health company that specializes in connected posture correction devices and digital coaching.
The deal is expected to close on or around February 7, and will run DarioHealth $31 million to complete the acquisition. This comes in the form of $1.5 million in cash and $29.5 million in stock – which equates to about 1.7 million DarioHealth shares.
Oded Cohen, CEO and cofounder of Upright, will stay with the new company, serving as general manager of MSK product and a member of the board.