DarioHealth completes a $10 million acquisition of Twill, bolstering its digital health offerings for chronic conditions. The strategic move creates a comprehensive platform covering various ailments, from emotional health to diabetes and heart disease. Financially, Dario disbursed cash and issued shares, with additional funding through a private placement. Anticipated benefits include increased revenue, improved margins, and enhanced member engagement, driving profitability post-acquisition.
DarioHealth Corp. (Nasdaq: DRIO) has finalized the acquisition of Twill, Inc., a leading provider of digital-driven chronic care management solutions. This strategic move solidifies Dario’s position in the digital health sector.
The acquisition forms a comprehensive platform catering to a diverse range of chronic conditions, encompassing emotional health, diabetes, and heart disease.
Financial Details:
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DarioHealth disbursed $10 million in cash and issued 10 million shares of common stock through pre-funded warrants to Twill’s creditors and equity stakeholders. Concurrently, a private placement of convertible preferred stock totaling $22.4 million was undertaken to raise additional funds. Inducement grants of stock options were distributed to key Twill personnel, including the newly appointed Chief Operating Officer, Tomer Ben-Kiki.
Benefits and Industry Impact of Twill Acquisition:
– The acquisition is forecasted to substantially increase Dario’s revenue, potentially doubling the projected $30.5 million for 2023. Enhanced gross margins of 80-85% by 2025 are anticipated, driven by Twill’s robust financial performance.
– Dario gains access to Twill’s established clientele, comprising major national health plans, Fortune 100 employers, and pharmaceutical firms. The amalgamated offerings present opportunities for expanded revenue streams through cross-selling to the existing client base, which currently exhibits minimal overlap.
– Immediate cost synergies are envisaged, with anticipated savings of nearly 30% within two years, thereby expediting Dario’s journey to profitability post-acquisition. The combined solution is poised to elevate member engagement throughout their healthcare journey, facilitating improved outcomes across diverse populations.
– The acquisition fortifies Dario’s capacity to match members with tailored solutions promptly, fostering avenues for further integration. Leveraging Twill’s expertise and technology, Dario can deliver a more comprehensive and engaging digital health experience to patients and healthcare providers alike.
Erez Raphael, CEO of Dario, remarked, “The acquisition of Twill presents an exceptional opportunity to merge our complementary solutions, establishing an unparalleled platform for the next era of consumer-centric digital health. Integration of Twill not only bolsters revenue and margins instantly but also propels rapid growth and profitability, underpinned by a robust SaaS model. We are confident in our ability to seamlessly integrate Twill and its operations, given our proven track record in assimilating previously acquired entities.”