DarioHealth Corp., announced that it has acquired Twill, Inc., a leader in digital-led care. The combination enables Dario to create one of the most comprehensive digital offerings in the market for chronic conditions, spanning a wide spectrum of health and well-being needs from emotional health to the costliest chronic conditions. The transaction creates immediate scale, with three of the top eight national health plans, multiple Fortune 100 employers and several major pharmaceutical companies as customers.
The acquisition of Twill is expected to nearly double pro forma 2023 revenue, and gross margins are expected to reach approximately 80-85% by 2025. The acquisition is expected to accelerate market penetration and drive greater sales opportunities as a direct result of the breadth of combined solutions, with an opportunity to increase revenue per customer through cross-selling into both companies’ existing customer bases, which has almost no overlap. Dario expects to be able to realize cost synergies immediately, and expects to reach nearly 30% in annualized cost synergies within two years following the close of the transaction. The combination of revenue scale, expected improved gross margins, and significant cost synergies are expected to accelerate the path to profitability within the second-year post acquisition.
“The Twill acquisition is an incredible opportunity to bring together our complementary solutions and create an unrivaled platform for the next generation of consumer-centric digital health. The addition of Twill instantly boosts revenue and margins, leveraging a robust SaaS-like model to fuel expected rapid growth and accelerating profitability. We are confident in our ability to integrate Twill and its employees and operations, as we have a track record of integrating previously acquired businesses,” said Erez Raphael, CEO of Dario.
“It’s rare to find not just alignment, but shared passion igniting a collaboration. That’s exactly what we’ve discovered in Twill. Their dedication to consumer empowerment through technology mirrors our own, making this union not just a strategic move, but a powerful convergence of values and goals. This unwavering belief resonated with both companies’ shareholders, leading to shareholders from both companies participating in the financing. It’s an injection of not just capital, but confidence in the future we’re building together. With this strengthened foundation, we’re poised to aggressively pursue our growth plan, fueled by a shared vision and the passion of investors and executives alike,” concluded Erez Raphael. Twill’s deep consumer experience began with Happify Health, one of the original digital mental health solutions sold directly to consumers for more than ten years. During that time, Twill helped more than 4 million users improve their emotional health before expanding to deliver broader capabilities for commercial customers which today include some of the most marquee fortune 100 employers and top payors in the country. The launch of the Twill Care digital community further bolstered the company’s strength in engagement by offering an innovative approach to engaging members wherever they are in their care journey. Leveraging Twill’s innovation in well-being and navigation enhances Dario’s end-to-end member journey for optimization across solutions.
The combined solution will be unique in its ability to enroll and engage members across their care journeys, enabling Dario to deliver outcomes across broad populations. Improved navigation capabilities will help connect members with the right solutions at the right time and expand potential for additional solution integrations.
“The market is demanding more conditions from less vendors to reduce point solution fatigue and the high cost of managing multiple vendors. The combination of our solutions provides the single solution the market wants and expands Dario’s artificial intelligence and solution navigation capabilities, including immediate enhancements to Dario’s current GLP-1 solution,” said Rick Anderson, President of Dario. “It’s not just a goal, it’s a pathway,” said Tomer Ben-Kiki, Twill’s Co-Founder and CEO. “This shared vision fuels our powerful union, transforming data into a vibrant tapestry of individual health stories. Imagine three million threads of the combined company’s data, interwoven with rich insights and diverse perspectives, brought to life by our AI expertise. This tapestry reveals unprecedented depth, predicting needs and optimizing treatment for every person. The spark was undeniable from the start – Dario’s warmth and collaborative spirit resonated with our own. Together, we’re beyond excited to create something truly groundbreaking.” Tomer Ben-Kiki, will join Dario’s leadership team as Chief Operating Officer and Twill co-founder Ofer Leidner, will join as an advisor to the commercial team to support company growth.
SOURCE : PRNewswire