Exclusive: Home health test consolidation sees Imaware buy Binx assets
Home health test provider Imaware acquired the consumer testing division of sexual health startup Binx Health in an all-cash deal, Imaware co-founder Jani Tuomi tells Axios exclusively.
Why it matters: The home testing sector is consolidating, particularly in sexual health.
Details: The deal includes performance-based upside potential, and Tuomi "expect[s] Binx to contribute material revenues starting Jan 1, 2024."
- Boston-based Binx will retain its point-of-care molecular diagnostics business, which is excluded from the acquisition.
- Tuomi says Austin-based Imaware plans to make more acquisitions, with another potential 2023 deal in the works that's also focused on "bringing great science to the platform."
How it works: Imaware offers white-labeled test kits, telehealth capabilities, and online portals that guide users through pre-testing, testing and follow-up care for conditions including STIs and diabetes as well as hormone and vitamin levels.
- The acquisition brings Imaware to a total of roughly 40 clients, half of whom come from Binx.
Between the lines: Tuomi sees its Binx purchase as an enterprise-minded asset that will complement its focus on growing its B2B business and shore up rising consumer interest in sexually transmitted infection (STI) testing.
- STIs have been on the rise since 2017, with 2021 seeing the highest number of syphilis cases recorded in 70 years. Gonorrhea and chlamydia rates rose more than 4% between 2020 and 2021.
- "Most of the [interest in] consumer-oriented testing interest is coming from STIs," says Tuomi. "It's not actively being talked about. It's a taboo subject. So we wanted to make sure we have the infrastructure for that."
What's next: Imaware will likely conduct its first formal fundraise in Q1 of 2024, per Tuomi.
What they're saying: Binx CEO Jeff Luber says when the company began thinking about spinning out its digital health business several years ago, it spoke with a number of players before landing on Imaware.
- The company last raised in 2021 via a $104 million Series E round led by OrbiMed.
State of play: Several testing and telehealth companies have consolidated in recent months, and many deals have included a focus on sexual health and fertility.
- Telehealth business Thirty Madison in June bought patient file assets from bankrupt The Pill Club for $23.2 million after acquiring women's health testing startup Nurx last February.
- Testing company Everly Health in 2021 bought three companies: diagnostic clinician network PWNHealth, lab test provider Home Access Health, and fertility startup Natalist.
- Telehealth company Ro has also made several recent acquisitions, including of: women's fertility startup Modern Fertility (a reported $225 million deal), home health testing startup Kit, and male fertility testing company Dadi.