Noteworthy M&A Transactions – October 2021

NOV 30
October 2021 M&A activity consisted of several compelling themes:
  1. Companies leverage data and artificial intelligence (AI) to build out predictive care platforms. There has been significant M&A activity across the landscape of predictive care, from personalized mental healthcare to cardiovascular decision support tools. This trend is driven by stakeholders across the healthcare landscape: patients demanding real-time feedback without having to step into their primary care provider's office, providers seeking out innovative solutions to drive better outcomes for their patients, and payers utilizing insights derived from AI to assess risk across their populations. Not only are companies leveraging the data to drive care, but they are learning from the data through automated intelligence to deliver more personalized solutions. This focus on patient data and insights is likely to continue to gain traction as providers turn to anticipating care needs in real time. This presents significant opportunity for healthcare companies to continue to make strategic acquisitions and develop partnerships centered around predictive care and AI.
  2. Continued investment in digital health solidifies its relevancy and importance within the patient care continuum. The Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law March 27, 2020, expanded access to telehealth and other connected health technology capabilities. This necessary and reactionary response to a public health crisis cleared the way for healthcare providers to step into the present. From mobile health apps and software that help clinicians make real-time care decisions to artificial intelligence and machine learning, digital health is primed to evolve the way patients receive care. Industry professionals and investors recognized digital health’s value proposition within the healthcare ecosystem and have demonstrated a willingness to put their money to work. Within the first half of 2021, digital health companies received a record breaking $15B in funding activity. This level of funding activity exceeds the first half of 2020’s funding activity by 138%. As we progress into the second half of 2021, market enthusiasm for digital health does not appear to waver.
Several transactions in October aligned with these themes:
  • Lark Health, a healthcare technology company focused on virtual chronic and preventative healthcare through conversational AI, closed a $100M funding round led by Deerfield Management Company. Lark plans to use this additional funding to expand to more payers and invest in research and development for its platform.
  • Ilumivu, a company that uses real-time data from wearable technology to deliver healthcare decisions support, acquired Cardiogram, a health decision support application. In addition to the acquisition, Ilumivu also completed a Series A funding round with Health Catalyst Captial aimed at further building out Ilumivu’s decision support solutions.
  • SonderMind, a company focused on mental and behavioral health, announced its acquisition of Qntfy to help build out the technology needed to deliver predictive analytics. Qntfy’s machine learning capabilities will help bolster the support SonderMind delivers to providers of personalized therapeutic care.
  •, an industry leader in on-demand mental healthcare, was acquired by Headspace, a global leader in mindfulness and meditation, to form Headspace Health. This acquisition marks the first mental health megamerger of its kind. Together, and Headspace garner a $3B valuation and will reach 100 million users. Headspace Heath proclaims itself as the most accessible and comprehensive mental health and wellbeing platform.
  • Alavida Health, developer of a digital health rehabilitation platform designed to cure alcohol and substance use addiction, was acquired by LifeSpeak (TSE:LSPK), a mental health and total wellbeing platform. The acquisition will bolster LifeSpeak’s cross-selling opportunities identified among its existing customers.
  • Betterup, a developer of an online coaching platform designed to boost the professional performance of working individuals through skill development, received $339 million of Series E venture funding from Lightspeed Venture Partners, ICONIQ Capital, Wellington Management and various other minority investors. The funds will be primarily used to accelerate international growth and product development.
TripleTree continuously monitors the market to identify the forces and themes impacting the healthcare industry. Thanks for reading and, as always, let us know what you think! 
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