Family mental health company Manatee has acquired AI-backed mental health coaching company HappyPillar.

HappyPillar offers a digital self-guided, parent-child therapy tool. The platform uses AI and machine learning to help customize and create 5-minute daily therapeutic sessions for children. The tool also has a mood and behavior tracking feature to monitor progress.

Meanwhile, Manatee offers virtual therapy for children and families. The provider’s model works on a 12-week personalized care plan. It also provides parent counseling, which involves a caregiver, therapist and child development specialist.

Manatee plans to use HappyPillar’s AI tool as a way to support families in between sessions with professionals.

“Expanding access means meeting families where they are, sometimes that’s in a session with a therapist, and sometimes it’s through daily moments at home,” Damayanti Dipayana, CEO of Manatee, said in a statement. “Family therapy is incredibly powerful, but real change happens between sessions – in the everyday interactions that build trust, empathy, and connection. Happypillar’s approach aligns perfectly with our belief that technology can strengthen family relationships by making those moments more intentional and meaningful.”

Manatee has raised a total of $11.6 million, according to Crunchbase. Its most recent raise was $5 million in June of 2024.

The pediatric mental health landscape

Manatee isn’t the only pediatric-focused provider using M&A as an expansion strategy. Youth mental health provider Hazel Health acquired fellow virtual pediatric providers Little Otter and BeMe Health this year.

Additionally, mental health benefits company Lyra acquired youth mental health platform Bend Health in July.

Still, the youth mental health sector has been turbulent as well.

Nashville, Tennessee-based pediatric and young adult behavioral health care provider Newport Health announced layoffs in October. Additionally, youth provider Brightline shut down operations in 45 states to focus on creating a hybrid model in five states, a move that resulted in significant layoffs for the company. And Hazel Health recently laid off 11% of staff — a move connected to its M&A activities.