XRHealth Expands Into 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 deal since November.
The digital therapeutics provider also acquired Living Brain, a Germany-based medical device company focusing 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 from 22 to 40 states this year.
"Both companies expand our behavioral health capabilities, adding experienced clinical teams, new patient populations, and additional provider and payer relationships,” said Eran Orr, CEO of XRHealth, as stated in Behavioral Health Business. “Our goal for the combined company over the next 12 to 24 months is continued strong growth, driven by bringing 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 ownership of Pursue’s FDA-authorized digital therapeutics, RESET and RESET-O, designed for cognitive behavioral therapy and contingency management through smartphones. PursueCare's acceptance of private insurance, Medicare, and Medicaid also strengthens XRHealth's payer networks.
Additionally, XRHealth owns Harvest Bio, a biotech subsidiary of PursueCare, which acquired RESET and RESET-O following Pear Therapeutics' bankruptcy in 2023.
While the financial terms remain undisclosed, a public filing reveals XRHealth issued approximately $16.25 million in shares for the acquisitions of PursueCare and Harvest Bio. A separate filing indicates XRHealth raised $2.15 million in cash from 17 investors to support its growth strategy.
"We see the biggest opportunity in combining clinical services, software, and digital therapeutics working together," said Orr. "Our focus is helping brick-and-mortar and telehealth providers become AI-first digital health clinics. We'll continue building our core technology and AI in-house and be selective about acquisitions that add clinical teams, capabilities, or new markets."