Dive Brief:
- 98point6 Technologies purchased the remainder of asynchronous telehealth provider Bright.md’s assets for an undisclosed sum, the virtual care software firm said on Tuesday.
- The deal, a split of 45% cash and 55% equity, includes Bright.md’s commercial assets, including 16 customer contracts as well as the firm’s sales and customer success teams, a spokesperson told Healthcare Dive.
- The acquisition comes months after Bright.md’s technology was scooped up by Evernorth, insurer Cigna’s health services division.
Dive Insight:
Merger and acquisition activity among healthcare technology companies could heat up in 2024 as venture capital funding declines and buyers look for more integrated product offerings, experts told Healthcare Dive.
Digital health funding last year fell to the lowest level seen since 2019, according to a report by venture capital firm and consultancy Rock Health.
Startups were able to raise funds from existing investors, bring in extensions to previous raises and scoop up unlabeled funding to stay afloat in 2023 — but those tactics likely won’t continue this year, paving the way for increased M&A.
Founded in 2015, Seattle-based 98point6 recently pivoted away from care delivery to focus on licensing its telehealth software to providers. In the spring, the company sold its self-insured employer business, affiliated physician group and a software license to Transcarent in a deal worth up to $100 million.
The Bright.md purchase will help 98point6 offer asynchronous telehealth, which allows providers and patients to send messages and respond to questions when they’re available, instead of relying on a real-time virtual visit.
Patient messages to providers spiked during the pandemic, and an increasing number of health systems are billing for these services, according to a recent JAMA study.
