Exclusive: Nomi Health buys Artemis for $200M

Payment startup Nomi Health has acquired Artemis Health, which uses data to help U.S. employers fine-tune health offerings, in a $200 million deal.

Why it matters: The pairing of the two payment-minded startups is part of an ongoing consolidation wave in digital health where small, like-minded upstarts combine their assets to round out their offering.

Other examples of the trend include:

• Telehealth giant Teladoc acquiring diabetes-focused virtual care provider Livongo for $18.5 billion.
• Health clinic operator Carbon Health purchasing remote monitoring startup Alertive Healthcare for an undisclosed sum.
• The merging of Headspace and Ginger, two mental health providers.

The details: While Nomi connects employers directly with health care providers, Artemis scans employers' health care budgets to trim the fat.

• The combined companies will build on complementary strengths, providing customers a wider range tools for choosing and covering benefits..
• Artemis brings existing partnerships with 500 employers and health plans including GE Appliances, Intuit, and J.B. Hunt.
• Nomi will continue to build out its COVID-19 response program, which currently includes 200 pop-up clinics and seven laboratories.
• The acquisition comes on the heels of Nomi Health’s $110 million Series A round, co-led by Rose Park Advisors and Arbor Ventures.
• Artemis' team of 120 is joining the Nomi Health team of more than 2,000.

What's they're saying: "If we’re going to save the U.S. health care system we need to rewire it to run fast," says Nomi founder and CEO Mark Newman. "That’s our approach."

The bottom line: "The health care benefits sector is reaching maturity and part of that is consolidation — going from single solutions to suites and platforms," says Steven Wardell, a digital health consultant with the growth consulting firm Wardell Advisors.

Correction: An earlier version of this story mistakenly said the Livongo deal was $18.5 million, not $18.5 billion.