DarioHealth has acquired digital-led care leader Twill, Inc., aiming to establish a comprehensive digital offering for chronic conditions. The acquisition is expected to significantly boost pro forma 2023 revenue, nearly doubling it, and achieving gross margins of 80-85% by 2025. With immediate cost synergies and a projected 30% annualised cost synergies within two years, the move is set to accelerate market penetration and drive sales opportunities by cross-selling into both companies' customer bases.
In conjunction with the acquisition, Dario priced a $22.4 million equity financing. The combined solution resulting from the acquisition is anticipated to enrol and engage members across their care journeys, leveraging artificial intelligence and improving solution navigation capabilities. With three of the top eight national health plans, major employers, and pharmaceutical companies as customers, the acquisition positions Dario to achieve profitability within the second year post-acquisition, enhancing its market presence and scale.
The acquisition underscores Dario's commitment to creating an unparalleled platform for consumer-centric digital health, with immediate boosts to revenue and margins, a robust SaaS-like model, and the potential for rapid growth in the digital health sector.
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