DarioHealth Explores Strategic Alternatives, Including a Possible Sale

1 October, 2025

Board forms special committee with Perella Weinberg Partners to explore merger, sale, or standalone strategy after reverse split and $17.5M raise

DarioHealth, the Israeli-American digital health company, may be preparing for a sale. The company announced over the weekend that its board has launched a comprehensive strategic review “aimed at enhancing shareholder value following several inbound approaches.” To lead the process, the board appointed a special committee of independent directors and tapped financial advisory firm Perella Weinberg Partners. The committee will evaluate all options—ranging from a merger or acquisition to continuing operations as a standalone company.

The announcement sent DarioHealth’s stock surging 18.2% on Nasdaq, giving the company a market capitalization of about $89.2 million. For the first half of 2025, sales reached $8.5 million, slightly down from $8.8 million a year earlier, while net losses widened to $22.2 million from $20.8 million.

Recent moves suggest the company is streamlining its balance sheet ahead of a potential deal. In August 2025, DarioHealth executed a 1-for-20 reverse stock split, consolidating every 20 common shares into a single listed share. Just a week ago, it raised $17.5 million in a private placement of 2.7 million shares at $6.45 each—nearly half their market value at the time. The company said the proceeds would be used for “general corporate purposes.” Many investors interpret these steps as efforts to strengthen the company’s share profile and financial standing before pursuing a transaction.

From Connected Medical Devices to Digital Health Platforms

Founded 15 years ago in Israel, DarioHealth began with connected medical testing technology. Its first flagship product, the DarioMeter, was a smartphone-based glucose monitoring device for diabetes patients, compatible with iOS and Android accessories. Since then, the company has expanded into a broad digital health platform combining connected testing kits with online services. Its offerings include blood glucose monitoring, blood pressure measurement, nutrition tracking and coaching, support for obesity medications, biofeedback sensors, and an app for chronic pain management and posture improvement.

While most of its sales are concentrated in the U.S. market, DarioHealth maintains strong Israeli roots. The company is incorporated in Delaware and employs around 200 people worldwide, the majority outside Israel. Yet its headquarters remain in Caesarea, where CEO Erez Raphael—who has led the company since 2013—oversees operations. Research, development, and intellectual property are managed through its Israeli subsidiary, LabStyle Innovation.

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