Talkspace Working With Advisers on Possible Sale

(Bloomberg) -- Talkspace, an online therapy app promoted by celebrities including swimmer Michael Phelps and singer Demi Lovato, is working with an adviser on a potential sale, according to people with knowledge of the matter.

The New York-based company could be valued at about $1 billion in a sale, said one of the people, who asked to not be identified because the talks are private.

The business has attracted interest from special purpose acquisition companies, one person said. Health-care and technology firms have also shown interest, the people said. Discussions may not lead to a deal and Talkspace could choose to remain independent, they said.

“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,” Talkspace Chief Executive Officer Oren Frank said in a statement.

Talkspace links patients with licensed therapists by video chat and text, allowing them to seek treatment from home. The company uses tools such as machine learning and artificial intelligence to analyze transcripts of therapy sessions to detect trends in a patient’s behavior that it says can lead to better treatment options.

The startup raised $50 million from investors last year and struck a a deal with U.S. health insurer UnitedHealth Group Inc.

The talks come as a huge increase in telemedicine services amid a global health crisis has made those types of businesses particularly attractive.

Teladoc Health Inc. said it was acquiring Livongo Health Inc. in August, and telemedicine company Hims Inc. plans to go public through a merger with a special-purpose acquisition company.

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