DarioHealth acquires Twill for $10M in cash, 10M in shares

DarioHealth announced that it has acquired Twill. The acquisition of Twill is expected to nearly double pro forma 2023 revenue, and gross margins are expected to reach approximately 80-85% by 2025. The acquisition of Twill is expected to nearly double pro forma 2023 revenue, and gross margins are expected to reach approximately 80%-85% by 2025. Dario expects to be able to realize cost synergies immediately, and expects to reach nearly 30% in annualized cost synergies within two years following the close of the transaction. The combination of revenue scale, expected improved gross margins, and significant cost synergies are expected to accelerate the path to profitability within the second-year post acquisition. Under the terms of the Twill acquisition, Dario paid $10M of cash and agreed to issue approximately 10M shares of common stock in the form of pre-funded warrants for the benefit of Twill’s debt holders and equity holders the warrants will vest in four equal amounts at 270 days, 360 days, 540 days and 720 days, post deal closing.