Amwell (NYSE: AMWL), one of the nation’s largest telehealth companies, could be in the market to acquire a behavioral health startup, according to Business Insider.
Based in Boston, Amwell connects patients with doctors via secure video connection. The company, formerly known as American Well, has thrived amid the pandemic, which has made virtual visits a mainstream necessity within every type of health care.
Looking ahead, Amwell is considering merger and acquisition deals to remain competitive even post-pandemic, Business Insider reported. The publication ran the news following a Nov. 12 interview with Amwell CEO Ido Schoenberg.
“You cannot do everything yourself.” Schoenberg told Business Insider when asked if Amwell had plans to buy any mental health startups. “And I see behavioral health needs growing in the foreseeable future.”
Amwell isn’t the only one jumping aboard the virtual behavioral health train. Amid the pandemic, telebehavioral health’s popularity has boomed, creating deal and investment opportunities for many companies in the space.
Take Talkspace, for example. In March, a spokesperson for the startup told Behavioral Health Business user volume had increased 65% year-over-year, with B2B inquiries up 150%. That spike in demand has translated into increased interest from buyers who want to purchase the company, Talkspace CEO Oren Frank recently told BHB in a statement.
“Interest in acquiring the company is not new — and as demand for telehealth services has grown dramatically over the months of the COVID-19 pandemic, that interest has grown with it.” Frank said.
And amid that interest, Bloomberg recently reported that the text-based therapy company is working with advisers on a potential sale.
If Amwell and Talkspace are any indication, the industry could see a flurry of telebehavioral deals in the months ahead.