Universal Health strikes $835 million Talkspace deal in mental health push

By Padmanabhan Ananthan

March 9 (Reuters) – Hospital operator Universal Health Services said on Monday it would acquire virtual healthcare provider Talkspace in a deal valued at $835 million, amid rising demand for behavioral health services.

Universal Health Services will pay $5.25 per share for Talkspace, a 10.29% premium to the stock’s last close. Shares of Talkspace were up more than 7%, while Universal Health’s shares fell 5% in early trading.

Here are some details:

* Talkspace provides virtual mental health services througha network of about 6,000 licensed professionals across all 50U.S. states, Washington, D.C., and Puerto Rico. * Guggenheim analyst Jason Cassorla said Talkspace shouldhelp the hospital operator capture more behavioral patientvolumes, allaying investor worries over growth of the business. * Cassorla said successful integration of the Talkspacebusiness and the resulting lift in volumes amid strong industrydemand would be a favorable development. * Universal Health Services said Talkspace’s services wereavailable to more than 200 million people at the end of 2025through health plans, employee assistance programs and otherbenefit arrangements. * Talkspace generated $229 million in revenue in 2025. * Universal Health said the acquisition would help it expandaccess to outpatient and virtual mental health care. * The deal was approved by the boards of both companies andis expected to close in the third quarter.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Sriraj Kalluvila)