PROVIDENCE – Virgin Pulse Inc. has entered into a definitive agreement to acquire the Denver-headquartered company Welltok, the company announced Thursday.
Terms of the deal were not disclosed. The companies expect it to close the deal later this month.
Welltok, a “consumer activation and data analytics company,” has roughly 250 employees. If the transaction is completed, Virgin Pulse’s employee count would rise to about 2,000.
Providence-based Virgin Pulse – a company that provides digital health and well-being programs for the workforces of corporate clients – said the deal will allow it to offer more features and to serve “substantially more” people with its platform.
“The addition of Welltok will allow us to deliver new and expanded data, analytics and multi-channel communications capabilities to our current clients while accelerating our ability to deliver a scalable end-to-end health activation and engagement platform that addresses the unique needs of the health care industry,” said Chris Michalak, CEO of Virgin Pulse.
Welltok will remain operating in its locations in Denver, Austin, Texas, and Burlington, Mass. Virgin Pulse will remain headquartered in downtown Providence.
When asked if the deal would impact the organizational structure of Virgin Pulse, a spokesperson said the deal would be “additive” and would likely expand the structure of the organization overall.
Welltok’s product combines clinical and lifestyle data and uses predictive analytics that is then used to engage in multichannel outreach to customers to promote personalized actions to improve their health and wellbeing. Virgin Pulse also noted that Welltok already works with “Medicare, Medicaid and commercial plans to deliver meaningful member experiences that create loyalty, close gaps in care, improve medication adherence, deliver critical communications and connect members with appropriate resources.”
“Combining Welltok’s ability to identify and motivate consumers to initiate and complete specific health actions, with Virgin Pulse’s ability to engage users in managing and making the best possible decisions about their health and wellbeing every day, will provide clients, consumers, patients and members a clear path to achieving health outcomes and demonstrable cost savings,” added Michalak.
The deal is subject to regulatory approval and agreement terms.
Virgin Pulse said it serves 4,000 clients in 190 countries and is backed by Marlin Equity Partners.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
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