Fitbit, Inc. (NYSE: FIT) stock has been struggling around the $5 mark for some time. The wearable fitness device maker realizes that it needed to do something to spike growth. Well, today the company announced that it will acquire Twine Health.
Twine Health is a HIPAA-compliant connected health platform. Twine Health delivers an engaging and user-friendly experience to help people manage chronic conditions, such as diabetes and hypertension, and aid in lifestyle interventions, such as weight loss and smoking cessation, by making it easy for care teams of providers, coaches, friends and family to collaborate on care plans. The Twine Health platform brings a scalable approach to health coaching, allowing a single coach to work with a large number of patients, driving efficiencies while helping more people reach their goals.
Twine Health uses a powerful combination of artificial intelligence-driven insights and human interaction to generate positive health outcomes, automating parts of the coaching process and freeing up time for more personalized care. Randomized controlled trials conducted by world-renowned facilities including Massachusetts General Hospital and the Joslin Diabetes Center found that the foundational behavior change principles behind Twine Health’s technology helped drive statistically significant improvements in both diabetes and hypertension management. For example, patients at the Joslin Diabetes Center saw an average 3.2 drop in HbA1c after 3 months, and patients in Massachusetts General Hospital’s hypertension intervention saw an average 26mmHg drop in blood pressure after 3 months.
With this acquisition, Fitbit further extends its reach into healthcare and lays the foundation to expand its offerings to health plans, health systems and self-insured employers, while creating opportunities to increase subscription-based revenue. The acquisition will combine the power of the Fitbit platform to drive lasting behavior change with Twine Health’s clinical expertise and proven ability to help patients better manage their care through a highly scalable platform and coaching model. In the longer term, Fitbit will have the opportunity to extend the benefits of the Twine platform to its more than 25 million users and expand into new condition areas.