Nomi Health buys Artemis Health for $200 million

Payment startup Nomi Health has acquired Artemis Health, which uses data to help U.S. employers refine health offerings, in a $200 million deal.

Why it matters: The pairing of the two payment-focused startups is part of an ongoing wave of consolidation in digital health, where small, like-minded upstarts are combining their assets to round out their offerings.

Other examples of the trend include:

• Telehealth giant Teladoc acquire diabetes-focused virtual healthcare provider Livongo for $18.5 billion.
• Health clinic employee Carbon Health to buy start up remote monitoring Alertive Healthcare for an undisclosed amount.
• The to combine from Headspace and Ginger, two mental health providers.

The details: While Nomi puts employers in direct contact with healthcare providers, Artemis scans employers’ healthcare budgets to reduce fat.

• The combined businesses will build on complementary strengths and provide customers with a broader range of tools to choose and cover benefits.
• Artemis brings together existing partnerships with 500 employers and health plans, including GE Appliances, Intuit and JB Hunt.
• Nomi will continue to build out its COVID-19 response program, which currently includes 200 pop-up clinics and seven labs.
• The acquisition comes on the heels of Nomi Health’s $110 Million Series A Round, co-led by Rose Park Advisors and Arbor Ventures.
• The 120-strong Artemis team joins the Nomi Health team of more than 2,000 people.

What do they say: “If we want to save the US health care system, we need to rewire it to work quickly,” said Nomi founder and CEO Mark Newman. “That’s our approach.”

It comes down to: “The healthcare industry is maturing and part of it is consolidation – moving from single solutions to suites and platforms,” said Steven Wardell, a digital health consultant at growth consulting firm Wardell Advisors.

Correction: An earlier version of this story erroneously said the Livongo deal was $18.5 million, not $18.5 billion.