Digital therapeutics co Dario raises $70m, buys Upright
DarioHealth is paying $31 million to add Upright s musculoskeletal solution to its digital therapeutic platform.
Israeli digital therapeutics company DarioHealth Corp. (Nasdaq: DRIO) announced today the signing of a definitive agreement to acquire digital musculoskeletal (MSK) company Upright Technologies Ltd. in a stock transaction. Dario is adding Upright s MSK solution to its digital therapeutic platform, which is one of the most comprehensive multi-chronic condition platforms in the market with 150,000 users.
Dario is paying $31 million for Upright with $29.5 paid in stock and $1.5 million in cash, after deducting outstanding debt and making working capital adjustments.
MedCity News
DarioHealth moves into back pain with $31M acquisition
Digital health startup DarioHealth bought musculoskeletal startup Upright for $31 million. The company makes adhesive devices users can stick to their back to track their posture.
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Upright Health makes a small device users can stick on their back to track their posture. DarioHealth acquired the company for $31 million. Photo credit: DarioHealth
Investors and health plans are taking a closer look at digital programs for musculoskeletal conditions, hoping to solve common ailments of back and shoulder pain. Last year, Omada Health bought remote physical therapy startup Physera. Now, DarioHealth is throwing its hat into the ring.
DarioHealth Announces Acquisition of Leading Digital Musculoskeletal Company Upright Technologies and $70 Million Financing
USA - English
Expands DarioHealth s multi-condition platform into the $213 billion musculoskeletal market and creates one of the most comprehensive digital health platforms
Financing supported by leading health care focused institutional investors, including Nantahala Capital Management, LLC, Perceptive Advisors, Driehaus Capital Management, Farallon Capital Management, Pura Vida Investments, and others priced at market pursuant to Nasdaq rules
Increases membership to more than 150,000 and combined proforma 2020 full-year revenue to more than $20 million
Company to host a conference call today, January 27, 2021, at 8:30 am ET
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DarioHealth announced today that it is expanding its digital chronic-disease-management business beyond diabetes and hypertension with the purchase of Upright Technologies, a musculoskeletal (MSK) health company that specializes in connected posture correction devices and digital coaching.
The deal is expected to close on or around February 7, and will run DarioHealth $31 million to complete the acquisition. This comes in the form of $1.5 million in cash and $29.5 million in stock – which equates to about 1.7 million DarioHealth shares.
Oded Cohen, CEO and cofounder of Upright, will stay with the new company, serving as general manager of MSK product and a member of the board.