Boston-based telehealth company Amwell is in talks to acquire teletherapy company Talkspace for about $200 million, according to news reports.
The acquisition deal comes after Talkspace had declined an earlier buyout offer from Amwell. Following the acquisition announcement, Talkspace’s share price has already surged significantly by more than 40% to 0.81.
Amwell is a pure-play telehealth company that offers a large range of services including urgent care, primary care and specialist care. It operates on a primarily B2B model and has contracts with payers and employers. This deal could give Amwell a larger market share of telebehavioral health and help expand its services.
This news comes as Talkspace faces the possibility of being delisted from Nasdaq. Earlier in November, Nasdaq sent the digital health company a letter noting that the company’s stock price has been below the $1.00 per share minimum needed for the last 30 days. The company has until May 17, 2023, to regain compliance.
A deal could save Talkspace from this fate.
It reported an $18 million net loss in the third quarter, compared with a $2 million loss in the prior-year period, as the teletherapy company continued to shift its focus toward business-to-business sales from a consumer-facing model.
This isn't the first potential deal for Talkspace this year. Before Amwell’s first offer, outpatient provider Mindpath Health had also approached the teletherapy company.
Both companies declined to comment on the Amwell acquisition rumours.
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