XRHealth Expands Addiction Care with PursueCare Acquisition
XRHealth, a telehealth company specializing in virtual reality (VR) therapy for mental health and pain management, has entered the addiction care sector with the acquisition of virtual provider PursueCare. This move marks the company's second significant deal in November.
XRHealth also purchased Living Brain, a Germany-based medical device company focused on neurological rehabilitation using extended reality (XR) technology. Both companies will now operate under the XRHealth brand.
Through these acquisitions and other growth strategies, XRHealth has expanded its clinical reach to 40 states this year, up from 22 previously.
“These acquisitions enhance our behavioral health capabilities, introducing new patient populations and expanding provider and payer relationships,” stated Eran Orr, CEO of XRHealth, as quoted in Behavioral Health Business. “Our goal for the combined company over the next 12-24 months is robust growth, driven by integrating our technology and AI into more clinics and care programs.”
Following the integrations, patients and clinicians can expect improved access to new care solutions and AI tools, according to Orr.
With the acquisition of PursueCare, XRHealth gains control of Pursue’s FDA-authorized digital therapeutics, RESET and RESET-O, delivered via smartphones. PursueCare also accepts private insurance, Medicare, and Medicaid, expanding XRHealth’s payer networks.
Additionally, XRHealth now owns Harvest Bio, a biotech subsidiary of PursueCare that acquired RESET and RESET-O following Pear Therapeutics' bankruptcy in 2023.
While financial terms were not disclosed, XRHealth issued $16.25 million in shares for the PursueCare and Harvest Bio acquisitions. The company also recently secured $2.15 million in cash from 17 investors to support its growth strategy.
“Our vision is to combine clinical services, software, and digital therapeutics to create AI-first digital health clinics,” said Orr. “We'll continue developing our core technology and AI in-house and will be selective in future acquisitions that strengthen our clinical teams, capabilities, and market reach.”