DarioHealth Corp. acquired Twill, Inc. for $34.4 million.
Respective Board of Directors of DarioHealth and Twill, Inc. approved the deal unanimously. The Shareholders of Twill, Inc. have duly and validly approved this Agreement. Dario intends to use the net proceeds from the offering for general corporate purposes. The acquisition is immediately accretive to revenue and gross margins and expected to accelerate path to profitability. The acquisition of Twill is expected to nearly double pro forma 2023 revenue, and gross margins are expected to reach approximately 80-85% by 2025 and the acquisition is expected to accelerate market penetration and drive greater sales opportunities as a direct result of the breadth of combined solutions, with an opportunity to increase revenue per customer through cross-selling into both companies' existing customer bases, which has almost no overlap.
Stifel acted as financial advisor to Dario on the acquisition, and Ben Armour of Sullivan & Worcester LLP acted as legal counsel to Dario in connection with the acquisition and the financing. TD Cowen acted as financial advisor, and Michael J. Lerner and Annie Nazarian Davydov of Lowenstein Sandler LLP acted as legal counsel, to Twill in connection with the transaction.
DarioHealth Corp. (NasdaqCM:DRIO) completed the acquisition of Twill, Inc. on February 15, 2024.