Digital therapeutics co Dario raises $70m, buys Upright

Erez Raphael

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.

Dario, whose first product was diabetes diagnosis via smartphones, has developed a platform that combines advanced sensors, dynamic AI-driven behavior change, member journeys, and coaching, to diagnose and treat a range of chronic problems.

Dario has also announced definitive agreements with a syndicate of healthcare institutional investors to raise $70 million through a private placement of its common stock. Dario has executed securities purchase agreements for the sale of 3,278,688 shares at a purchase price of $21.35 per share. Dario intends to use the net proceeds from the offering for general corporate purposes.

The company only has revenue of $2 million but has recently signed major strategic deals with significant customers. As a result Dario's share price has risen 200% recently and is trading today down 0.81% at $23.30, giving a market cap of $216.31 million.

Dario CEO Erez Raphael said, "We are committed to delivering the industry's most comprehensive, clinically proven solution for the management of chronic conditions, and the addition of Upright, which is an expansion of our core competency, represents a significant step toward that goal. With similar approaches to building highly engaging and clinically effective products and similar cultures, I anticipate a rapid and seamless integration."

Upright CEO Oded Cohen said, "Similar to Dario, we have had great success building our product with roots in the D2C market and have begun to make inroads into the B2B space. We believe there are significant synergies that can be derived from being part of a broader digital health platform. We believe that together with Dario, we can deliver an integrated, scalable, virtual platform to reduce employer, payor, and provider healthcare costs and offer lasting and impactful health outcomes for end-users."

Cohen will serve as Dario's General Manager of MSK product and will join Dario's Board of Directors.

Published by Globes, Israel business news - en.globes.co.il - on January 27, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Erez Raphael
Erez Raphael
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