Health management platform provider Welltok announced the acquisition of wellness app maker Mindbloom today. Welltok will incorporate Mindbloom into its CafeWell Health Optimization Platform. Financial details of the transaction were not released. Since its founding in 2008, Mindbloom has disclosed about $1.8 million in funding from Seattle-area angel investors.
"Welltok, for some time, has been working on CafeWell, our breakthrough health optimization platform, and we have been working to ensure that that platform is both the best web and mobile experience possible," CEO Jeff Margolis told MobiHealthNews. "As we were looking at the strengths and weaknesses of the teams that we were able to assemble in Denver, New Jersey, and the Bay Area, we were taking a systematic look at organizations we thought were really top notch, in terms of creating an engaging user experience on mobile in the healthcare industry, and that led us to finding the Mindbloom team."
While Margolis added that they had not previously worked with Mindbloom, he realized the companies shared the vision of using preventive medicine to keep people healthy when they first started talking in November 2013.
Seattle-based Mindbloom offers users a series of apps aimed at helping users improve their lives. One app, Juice, was created in conjunction with Premera Blue Cross to help users track which aspects of their routine affect their energy. Another app, Lifegame, uses a virtual tree to represent the different spheres of life like health, career, and spirituality. To make the tree grow users have to water it by taking small actions toward those goals.
The apps will still be available separate from the CafeWell program, but Margolis said he hopes to not only integrate Mindbloom apps into the CafeWell experience, but also the ideas behind the Mindbloom apps.
"We expect we will be profoundly influenced by the Welltok Seattle team, formerly known as Mindbloom, because they bring a wonderful mix of understanding to the problems that need to be solved in healthcare," Margolis said. "So this isn't just about buying Mindbloom for their apps. This is about really taking a team of very talented people and having them positively influence the entire CafeWell platform experience."
The acquisition came just five months after Welltok's acquisition of healthcare incentive design and management firm IncentOne, which creates incentive programs meant to deliver rewards to consumers after they fulfill a requirement from the program.
"That has largely been a web-based, or even back office based platform for most of its existence," Margolis said. "So you can see now if we put highly engaging mobile applications or highly engaging web applications over the top of these sophisticated engines in the way that is easy for a consumer to understand what needs to be done -- and how they get rewarded for doing it."
In February, IBM announced that they contributed to Welltok's $22 million round, which was led by New Enterprise Associates and included participation from Qualcomm Ventures. The money will go into the development of CafeWell Concierge that includes integration with IBM's Watson. The service allows users to ask questions about different health issues.