Mavida Health, a virtual provider of mental health services for women and mothers, is being acquired by Wisconsin-based WPS Health Solutions, a benefits administrator and nonprofit health insurer.
Mavida will continue to operate as an independent company and maintain its leadership team and operating structure. Financial terms were not disclosed, but the company also announced plans to expand its services into new states.
As part of the deal, WPS’ current Chief Growth Officer, Rochelle Myers, will also now serve as Mavida Health’s new president.
“One of the primary reasons WPS pursued this acquisition was to help accelerate Mavida’s growth and expand access to specialized mental healthcare for more women and families,” Myers told Behavioral Health Business. “Mavida currently operates in several states, and we’re actively evaluating opportunities to expand into additional markets, including Wisconsin. In fact, we’ve already begun taking the necessary steps to support future operations in Wisconsin. While we’re still working through our expansion plans, our goal is simple: reach more women, more families, and more communities with high-quality mental health services.”
The Los Angeles-based mental health platform was founded in 2023 by Dr. Sarah Oreck and Emma Sugerman, the company’s current CEO and chief operating officer. Today, it offers services ranging from individual and group therapy and medication management to patients throughout California, New Jersey, New York and Texas.
Mavida previously raised $1.5 million in a seed round and may have raised a bit of additional, undisclosed capital in 2024, according to PitchBook. Sugerman also hinted at a 2024 fundraise in a social media post, but did not disclose details at the time.
“Joining WPS gives us the scale to reach more women and families, especially every woman who has ever been told her symptoms were normal when they weren’t,” Oreck said in the press release.
Mavida’s buyer, WPS — formerly the Wisconsin Physicians Service Insurance Corporation, prior to its 2024 rebrand — maintains a portfolio of businesses that provide health insurance and health services for federal contracts. Its CEO Wendy Perkins said in a press release that the acquisition of Mavida will allow WPS to “better meet the growing demand for these services.”
“We see strong demand for services that address mental health needs related to the broader reproductive journey – from Polycystic Ovary Syndrome (PCOS) and Premenstrual Dysphoric Disorder (PMDD), to fertility, pregnancy, postpartum care, pregnancy loss and menopause,” Myers said. “Employers understand that supporting these needs can have a meaningful impact on workforce wellbeing, engagement and retention.”
The acquisition by WPS is said to be part of a broader revenue diversification strategy to pursue deals that are synergistic to its core insurance operations. The Mavida acquisition is the first one WPS has made as part of this new strategy. Although WPS noted in the release that it has other targeted acquisitions it is actively eyeing.
“Our goal is not to fundamentally change what has made Mavida successful,” Myers said. “Rather, it’s to provide the resources, operational support and long-term investment needed to help the company grow and serve more individuals in an underserved demographic.”