Physitrack, a London-based digital physical therapy and patient engagement software provider, acquired Finnish company Physiotools.
The Finnish company that got its start selling physical therapy books has shifted its business toward software, telehealth, and other features over the years.
This latest acquisition comes just weeks after Physiotools’ acquisition of Mobilus Digital Rehab, another physical therapy patient engagement technology-maker based in Sweden, founded in 1996.
Both companies now fall under the Physitrack umbrella.
Pre-merger, Physitrack was bringing nearly $5 million in revenue, while Physiotools was claiming roughly $2.5 million. With these acquisitions, Physitrack now offers virtual care technology in physical therapy globally, covering 187 countries, including the UK, Netherlands, Germany, Italy, Spain, Ireland, the Nordics countries, Asia, and North America, the company said.
The deal did not disclose the terms but said that it was paid for in a combination of cash and shares.
Mika Huotari, CEO of Physiotools, said: “In a rapidly digitizing healthcare world, it’s important for a company to constantly innovate through active learning, while at the same time fuelling healthy growth. Physitrack and Physiotools are at the core very similar companies in the way that our cultures have embraced this notion, and the fit from both a commercial and cultural perspective is perfect. In addition to this, the geographical overlap between our customer portfolios is a perfect fit which makes it possible for our products to have true global reach.”
Physitrack will continue to seek acquisitions of companies in the digital health space that, like itself, have a dual focus on growth and profitability, the company said. “There are other companies that we’re looking at that have tech that’s interesting, that can help us with the innovation side of things and fast-track some things we were looking at in the past.” “So, ideally, the next company we buy will be more [focused on that], but hopefully, we can combine the tech side of things with some of the financial upside as well.”
Mergers and acquisitions (M&A) continue to be the most popular source of exit for digital health investors and companies. One hundred and thirty-two digital health companies were acquired in the first nine months (9M) of 2020, compared to 125 in 9M 2019, according to Mercom’s 9M 2020 Digital Health Funding and M&A Report.