This morning, direct-to-consumer virtual health company Ro announced its plans to buy at-home diagnostic company Kit for an undisclosed sum. This marks the company’s second acquisition in two months.

Kit developed a system that allows patients to self-administer an at-home sample collection. Before taking the sample, patients are asked to download the corresponding app, which contains step-by-step videos on how to administer the test and offers on-demand support. The tests include finger-prick blood assays, blood pressure tests and weight measurement tools.

The patient then mails the sample away to a lab. Once the lab results are in, patients get a notification on their Kit app, where they can view the metrics.

When the M&A is complete, Ro will be able to offer the at-home diagnostic via its consumer-facing platform. According to the company’s release, patients will be able to view their data on the Ro platform and discuss the results with their doctor.

After the purchase, the plan is for Kit to continue as an independent service that can serve B2B customers like life insurance companies.

WHY IT MATTERS

It’s no secret that Ro is interested in the diagnostic space. In December the company purchased Workpath, maker of a tool that can offer on-demand in-home care services through an API system. Providers are able to request to send in-home blood draws or in-home nurse visits to a patient through the platform.

At the time of the Workpath acquisition, Ro also announced a new partnership with Quest which was aimed at processing its labs. The idea is for Ro to be able to provide diagnostic capabilities to its patients and act more as an integrated primary care platform.

This new add-on will expand its at-home sample collection efforts. According to Ro, Kit’s testing will be integrated into Workpath’s diagnostic service.

“With Kit, we are adding another essential piece to our vertically-integrated primary care platform. Kit has built their own lab and a magical patient experience for the self-collection of important health data – from blood tests to saliva, to blood pressure.

"Combining Kit with Workpath, our existing in-home-care API, will enable Ro and other healthcare companies to send either a healthcare professional or test kit to a patient's home with the click of a button. Ultimately, this delivers unrivaled convenience for patients and turns the home into the exam room of the future.”

THE LARGER TREND

Founded in 2017, Ro currently has a $5 billion valuation, after landing $500 million worth of venture funding in March. The company, which originally debuted as Roman, got its start in the men’s sexual health-and-wellness space.

Since then the company has expanded into a variety of areas, including smoking cessation, weight management, allergies and prescription dermatology. 

Workpath isn’t the only company that Ro has acquired this year. Roughly a month ago the company announced its acquisition of reproductive health company Modern Fertility for an undisclosed sum.

Ro’s main competitor in the direct-to-consumer virtual care space, Hims & Hers has also been focusing on new acquisitions. Just last week the company acquired virtual acne care company Apostrophe for an undisclosed sum.

Earlier this month it also acquired U.K. telehealth company Honest Health, looking to expand further into the U.K. and E.U. market.