Spring Health Set to Acquire Alma in Major Digital Health Consolidation Deal

2026-01-29 companies

New York, Thursday, 29 January 2026.
By acquiring Alma, Spring Health combines its AI-driven care with a vast provider network to serve 170 million lives, marking a pivotal moment in mental healthcare consolidation.

Strategic Convergence of AI and Infrastructure

In a decisive move to consolidate the digital mental health market, Spring Health announced a definitive agreement on January 28, 2026, to acquire Alma, a platform dedicated to supporting independent mental health providers [1][3]. This merger brings together two distinct yet complementary operational models: Spring Health’s data-driven “Precision Mental Healthcare” system, which leverages artificial intelligence to match patients with care, and Alma’s extensive infrastructure of insurance-based independent clinicians [5][6]. The combined entity is poised to serve approximately 170 million patient lives, effectively merging Spring Health’s reach of 50 million covered lives with Alma’s access to over 120 million lives through national and regional payer contracts [1][6]. Financial terms of the deal, which involves an undisclosed mix of stock and cash, were not released [8].

Operational Continuity and Leadership Structure

Despite the scale of this integration, the companies have emphasized a strategy of operational continuity to minimize disruption for both patients and providers. Upon the transaction’s completion, Alma will continue to operate as an independent business unit within Spring Health, retaining its distinct brand identity and service model for clinicians [1][4]. Leadership stability remains a priority; April Koh will continue her tenure as CEO of Spring Health, while Alma founder Harry Ritter is set to remain as CEO of the Alma division [3][6]. This structure is designed to allow Alma to maintain its focus on reducing administrative burdens for private practitioners—such as billing and insurance management—while benefiting from Spring Health’s technological resources and employer relationships [1][6]. Adam Chekroud, co-founder and President of Spring Health, noted that there are no actively planned changes to day-to-day operations or pricing models at this time [1].

Financial Context and Market Implications

This acquisition represents a significant maturity milestone for the digital health sector, characterized by a shift from fragmentation to consolidation. Both companies enter this agreement with substantial venture capital backing; Spring Health was valued at $3.3 billion following a $100 million Series E funding round in July 2024, bringing its total capital raised to approximately $470 million [5]. Alma has similarly secured significant investment, having raised over $220 million in total venture funding, including a $130 million Series D round in 2022 [1][5]. The transaction, which is subject to customary regulatory approvals and antitrust review, is expected to close in the second quarter of 2026 [1][8]. J.P. Morgan Securities LLC served as the financial advisor to Spring Health, while MTS Health Partners, L.P. advised Alma on the deal [3].

Sources

Mergers Healthcare