UnitedHealth Group division Optum may acquire AbleTo for $470 million.

Optum, the technology services division of UnitedHealth Group (NYSE: UNH) may acquire virtual behavioral telehealthcare provider AbleTo for $470 million. According to CNBC, which quoted informed sources, the deal talks are in an advanced stage. (CNBC)

Pandemic boosts demand for AbleTo’s services

AbleTo, which is based in New York, provides eight-week virtual therapy programs, which include the services of a therapist and a coach. Demand for AbleTo’s services has shot up by 25% during the coronavirus pandemic.

The people at higher risk from the virus have reached out more to the company. “It’s a group that is particularly anxious and fearful given the situation,” says Dr. Reena Pande, a trained cardiologist, and AbleTo’s CMO.

Further, people are experiencing emotional upheavals such as fears about a loved one getting sick, financial troubles, and the stress from being cooped up indoors for extended lengths of time.

AbleTo claims to be a market leader in virtual behavioral health care.

It also works with nine different insurers.

Optum already an investor in the virtual mental health startup

In January 2019, Optum Ventures, the venture investing arm of Optum, invested a significant amount in AbleTo, thereby closing a Series D funding.

Also, CEO Trip Hofer, who joined in mid-2018, previously worked with Optum for six years.

The deal would be another in a string of recent M&A deals in the telehealth space.

Teladoc acquired rival InTouch Health for $600 million earlier this year.

American Well, another big telehealth company, bought behavioral health provider Aligned Telehealth for an undisclosed amount at the end of 2019.

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