Insurtech company Bright Health has snapped up telehealth startup Zipnosis for an undisclosed sum. The acquisition, which was first reported by MedCityNews, signals that the unicorn health insurance company is looking to strengthen its foothold in the telemedicine market.

According to a release by Zipnosis' financial officer, Cain Brothers, this deal will allow Bright Health to deliver personalized care to patients and tailor to individual needs.

This news comes a week after news broke that Bright Health plans to raise at least $1 billion in an IPO.

MobiHealthNews has reached out to Bright Health for more details and will update the story accordingly.

WHY IT MATTERS

While the release from Cain Brothers was sparse on specifics, the deal is sure to give Bright Health more telehealth capabilities. Bright Health has a track record of working in the consumer-focused health insurance and technology space.

Meanwhile Zipnosis has a history of creating white-label telemedicine products for providers.  

THE LARGER TREND

Over the last few years investors have poured millions into Bright Health. In September the company announced a $500 million Series E round to help it expand its geography. Less than a year before, the company scored $635 million in Series D funding. To date the company has collected more than $1.5 billion in funding dollars.

Zipnosis is also a venture-backed company, but its venture amounts are more modest. All told, the company has over $20 million in investor dollars. In 2019, the company launched a new platform called ZipPlus, which helps providers using the company's telemedicine services to carve out a road map.