Ontrak has acquired US-based behaviour change platform LifeDojo.
The deal will add a technology-driven, digital business deployed by blue-chip customers into the employer space.
Furthermore, the transaction will expand Ontrak’s behavioural health engagement services for new and existing clients.
Financial terms were not announced.
Established in 2013, LifeDojo’s science-backed platform provides behaviour modules to encourage users to make positive life changes and improve their health.
The group’s resources and coaching programmes allow members to outline and strive towards certain goals, while receiving tools and advice to help them succeed.
According to the Journal of the American Medical Association, the deal comes during a ‘second wave’ mental health surge, which will present huge difficulties for those at risk of conditions such as anxiety, depression and post-traumatic stress disorder.
Through the acquisition, LifeDojo will increase Ontrak’s addressable market by enabling the creation of lower cost, digital interventions across behavioural health and chronic disease populations.
Furthermore, the target’s member-facing applications will allow for remote patient monitoring services, strengthening the buyer’s artificial intelligence operations and personalising its evidence-based coaching programmes.
Terren Peizer, chief executive of Ontrak, said: “As a public company and leader in virtualised healthcare, Ontrak is uniquely positioned to attract companies, products and technologies that expand our value proposition and footprint with health plan and employer partners.
“We will endeavour to make additional strategic purchases that expand our addressable market and maximise customer value. LifeDojo and these other intended acquisitions can possibly expand our total addressable USD 33.70 billion market by up to 100.00 per cent.”
There have been 9,149 deals targeting data processing, hosting and related services providers announced worldwide since the beginning of 2020, according to Zephyr, the M&A database published by Bureau van Dijk.
In the most valuable of these, Teladoc Health agreed to acquire Livongo Health for USD 18.50 billion.
Other companies targeted in this sector in the year to date include E*Trade Financial, Visma and GrubHub.
© Zephus Ltd