Fabric is back at it again with another acquisition, this time scooping up the virtual care business of physician practice juggernaut TeamHealth.
Here’s the updated timeline leading up to Fabric’s fourth acquisition in 18 months:
- March 2023 – Florence launches with $20M to tackle ER capacity constraints
- May 2023 – Florence nabs Zipnosis from Bright Health
- Jan 2024 – Fabric rebranding and GYANT acquisition
- Feb 2024 – Fabric closes $20M Series A led by General Catalyst
- June 2024 – Fabric acquires MeMD from Walmart
- Sept 2024 – Fabric picks up TeamHealth VirtualCare
That’s an unusually hot start for a startup still looking forward to its second birthday, but Fabric CEO Aniq Rahman walked Business Insider through the method behind the madness.
- After bringing a consumer mobile experience to the ER, Fabric acquired Zipnosis to add asynchronous telehealth capabilities and accelerate its roadmap to new sites of care.
- That apparently worked like a charm, so Fabric picked up GYANT’s conversational AI to serve as a patient entry point to its other offerings, then followed that up by grabbing MeMD and its 30k corporate/payor partners.
The latest move with TeamHealth VirtualCare officially gives Fabric access to over 100M lives in managed care contracts with payers, as well as a 50-state network of clinicians.
- TeamHealth also broadened Fabric’s medical group with multi-specialty experience, including cardiology, sports medicine, OB/GYN, and family medicine.
- On top of that, the health systems working with TeamHealth VirtualCare will transition to Fabric, providing plenty of surface area to start cross-promoting other services.
Put it all together, and Fabric’s strategy of acquiring both capabilities and customers has led to it having a rare amount of each for such a young company – not to mention an eight-figure ARR (reported during the GYANT acquisition) that’s probably well on its way to adding another digit.
The Takeaway
Fabric is leaning in on virtual care at a time when massive players are bowing out completely, creating an ecosystem of solutions that pushes the telehealth economics in a positive direction that’s hard to achieve with narrower strategies. That M&A playbook isn’t a secret, and given where we’re at in the investment cycle, Fabric probably has quite a few companies knocking on its door looking to be the next solution in its portfolio.
