The deal is expected to enable Dario to create a complete digital offering in the market for chronic conditions including mental well-being, emotional health, maternal health, and chronic conditions
DarioHealth buys digital health firm Twill. (Credit: National Cancer Institute on Unsplash)
US-based DarioHealth has completed the acquisition of digital healthcare company Twill to create a digital health platform across the most prevalent chronic conditions.
DarioHealth has priced a $22.4m private placement of convertible preferred stock for this acquisition.
The deal is expected to enable Dario to create a complete digital offering in the market for chronic conditions.
The platform will provide support for mental well-being, emotional health, maternal health, and the costliest chronic conditions.
DarioHealth has also highlighted the immediate scaling of the platform with three major national health plans, multiple Fortune 100 employers, and several pharmaceutical firms as clients.
The company plans to use Twill’s innovation in well-being and navigation to improve its end-to-end member journey.
Dario will be able to deliver results to a wide range of groups because of the integrated solution’s capacity to enrol and engage members throughout their care journeys.
Additionally, enhanced navigational features will increase the possibility of more solution integrations while also helping members find the right solutions at the right time.
Both companies will now combine a wealth of data and insights across individual care journeys to guide strategy across a wide range of health needs.
Dario CEO Erez Raphael said: “The Twill acquisition is an incredible opportunity to bring together our complementary solutions and create an unrivalled platform for the next generation of consumer-centric digital health.
“The addition of Twill instantly boosts revenue and margins, leveraging a robust SaaS-like model to fuel expected rapid growth and accelerating profitability.
“We are confident in our ability to integrate Twill and its employees and operations, as we have a track record of integrating previously acquired businesses.”
In exchange for the acquisition, DarioHealth agreed to issue about 10 million shares of common stock and paid $10m in cash.
These shares are provided to Twill’s debt and equity holders in the form of pre-funded warrants. Upon closing of the deal, the warrants will vest in equal quantities after 270 days, 360 days, 540 days, and 720 days.
DarioHealth anticipates that the acquisition will nearly increase its pro format revenue in 2023. It also anticipates increased sales prospects and faster market penetration.