LifeSpeak to acquire Wellbeats for up to $92.5M

Employee wellbeing is on the priority list of most organizations. This has facilitated a thriving wellbeing technology economy, that has seen plenty of acquisitions and unicorns.

In fact, the Global Wellness Institute predicts that corporate wellness will reach a market value of a whopping $58.4 billion by 2025.

In this context, wellbeing platform LifeSpeak has announced that it will be expanding its offering with the acquisition of Wellbeats Inc. Wellbeats is an on-demand is software-as-a-service (SaaS) physical wellbeing platform that has over 400 clients.

The upfront payment from LifeSpeak will be $80 million. However, an additional $12.5 million will be on the table if milestones and goals are reached. The final transaction is expected to happen in March 2022. As a result, changes may occur.

This is LifeSpeak’s fourth acquisition since it underwent an initial public offering (IPO) in July 2021. It is hoped that these purchases can make LifeSpeak a one-stop solution for all things wellbeing.

Evolving wellbeing

Speaking about the acquisition, Nolan Bederman, the executive chair at LifeSpeak, said: “LifeSpeak continues to aggressively build its solution offerings to meet global demand through strategic acquisitions.

“Wellbeats fits synergistically with our platform, allowing us to enhance and expand our mental health and wellness support capabilities.

“With the addition of Wellbeats’ incredible virtual physical wellbeing platform to our company, we have a tremendous opportunity to cross-sell additional valuable solutions to our clients and partners, adding significant value to their health and wellbeing investments.”

LifeSpeak decided to make the move after Wellbeats matched the company’s acquisition criteria.

The criteria include a top-quality business-to-business SaaS offering, a large and sticky tool with a good enterprise presence, an impressive team with beneficial skillsets, and a similar financial profile.

Wellbeats is also benefiting (beyond financially) from the acquisition. 

Jason Von Bank, president and CEO at Wellbeats, commented: “By joining LifeSpeak, we are advancing on our mission to provide all people the opportunity to live a healthier life, regardless of age, interest, or ability.”

“We’ve also delivered on bringing the two halves of the wellbeing equation together for our customers, who have sought mental health solutions to complement our physical wellbeing resources.”

Von Bank added: “Both Wellbeats and LifeSpeak are category leaders with impressive global partners and clients, and this partnership will accelerate our combined growth dramatically.

“We are excited to be part of the LifeSpeak family and look forward to continuing to deliver on our mission for our clients, their employees, and shareholders.”