Amwell reportedly in talks to accumulate Talkspace

Amwell is in talks to accumulate struggling teletherapy firm Talkspace for about $200 million, based on Israeli enterprise publication Calcalist.

Talkspace’s inventory value surged within the wake of the deal rumors. It went public in 2021 after a merger with a particular goal acquisition firm, opening at $8.90 per share. The deal valued Talkspace at $1.4 billion. 

However the digital psychological well being firm’s fortunes have slowed since its debut on the general public markets. Earlier this month, Talkspace acquired a letter warning it might be delisted from Nasdaq as its inventory had closed beneath the minimal $1.00 per share for 30 consecutive enterprise days.

It reported an $18 million web loss within the third quarter in contrast with a $2 million loss within the prior 12 months interval because the teletherapy firm continued to shift its focus towards business-to-business gross sales from a consumer-facing mannequin. 

Talkspace additionally lately introduced it had appointed a brand new CEO, Dr. Jon R. Cohen, who has served on the corporate’s board since September. Talkspace’s cofounders Oren and Roni Frank stepped down from their roles a couple of 12 months in the past. Its COO left shortly after, following an inner evaluate of his conduct “in reference to an organization offsite.”

This is not the primary potential deal for Talkspace this 12 months. In search of Alpha reported this summer time Talkspace had declined an earlier buyout deal from Amwell, and Axios Professional wrote that outpatient supplier Mindpath Well being had additionally approached the teletherapy firm. 

Each firms declined to touch upon the Amwell acquisition rumors. 

THE LARGER TREND

Whereas a variety of well being tech and digital well being startups hit the general public markets final 12 months, usually utilizing SPACs, the market slowed to a halt in 2022 amid a contracting financial surroundings.

In keeping with a report by Rock Well being, merger and acquisition exercise dropped within the second quarter this 12 months, however picked up a bit in Q3, whilst bigger digital well being funding dropped off. The report famous M&A could look extra interesting in contrast with unfriendly personal and public markets.