Universal Health strikes $835 million Talkspace deal in mental health push (updated)

Universal Health Services

09/03/2026 14:27

Adds analyst comment, updates shares

By Padmanabhan Ananthan

March 9 (Reuters) - Hospital operator Universal Health Services UHS.N said on Monday it would acquire virtual healthcare provider Talkspace TALK.O in a deal valued at $835 million, amid rising demand for behavioral health services.

Universal Health Services will pay $5.25 per share for Talkspace, a 10.29% premium to the stock's last close. Shares of Talkspace were up more than 7%, while Universal Health's shares fell 5% in early trading.

Here are some details:

Talkspace provides virtual mental health services through a network of about 6,000 licensed professionals across all 50 U.S. states, Washington, D.C., and Puerto Rico.

Guggenheim analyst Jason Cassorla said Talkspace should help the hospital operator capture more behavioral patient volumes, allaying investor worries over growth of the business.

Cassorla said successful integration of the Talkspace business and the resulting lift in volumes amid strong industry demand would be a favorable development.

Universal Health Services said Talkspace's services were available to more than 200 million people at the end of 2025 through health plans, employee assistance programs and other benefit arrangements.

Talkspace generated $229 million in revenue in 2025.

Universal Health said the acquisition would help it expand access to outpatient and virtual mental health care.

The deal was approved by the boards of both companies and is expected to close in the third quarter.

 (Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Sriraj Kalluvila)

 ((Padmanabhan.Ananthan@thomsonreuters.com;))