LifeSpeak, a Toronto-based employee and customer wellness software company, has acquired caregiver support platform Torchlight for $17.25 million in cash and over 160,000 in LifeSpeak shares.
An additional 769,000 shares priced at $10 each can also be issued as part of the deal, depending on the achievement of predetermined milestones.
Founded in 2007 and headquartered in Burlington, Massachusetts, Torchlight provides caregivers with direct access to top specialists and expertise in the field. Its platform features step-by-step guidance on caregiving topics, one-one-one advising, and concierge services to reduce caregiver stress.
Torchlight partnered with Bright Horizons for child and special needs education in 2013, and expanded its platform to include the eldercare category in 2016. In 2020, Torchlight’s platform was added to CVS Health’s point solutions management service.
Torchlight’s proprietary technology also generates workforce insights for human resource professionals and C-suite executives to identify employee needs and enhance performance outcomes. The startup claims its platform covers over 2 million employee families.
As a result of the acquisition, there are cross-sell opportunities between Torchlight’s caregiver support platform and LifeSpeak’s mental health and wellbeing education content.
The Toronto Stock Exchange (TSX)-listed LifeSpeak claims its acquisition of Torchlight is its largest to date, following its recent acquisition of LIFT Digital, an online wellness company, for $15 million in cash and shares. LifeSpeak also acquired ALAViDA, a provider of substance use disorder solutions, in October for $12 million.
Nolan Bederman, chairman of LifeSpeak’s board of directors, told Betakit that LifeSpeak decided to go public to build capital for mergers and acquisitions.
Initially a provider of live occupational workshops, LifeSpeak moved its resources online in 2008 and expanded its services to offer a suite of products addressing mental health and wellbeing education.
It started trading on the TSX in July, where its initial public offering secured $90 million with a $35 million secondary offering. LifeSpeak is currently listed on the TSX under the symbol ‘LSPK.’
The company serves over 225 clients across the world, from Fortune 500 companies to government agencies, insurance providers, and other healthtech firms.
Image by Dominik Lange via Unsplash