American healthcare technology company Elligint Health is acquiring Israeli digital health startup Laguna Health in a deal estimated to be worth tens of millions of dollars, although the transaction value has not been disclosed. Elligint, which provides care management and utilization management solutions to U.S. health insurers, plans to invest in Laguna’s Israeli operations and double its workforce.
Founded in 2020 by entrepreneurs Yoni Stein and Yael Peled-Adam, Laguna has raised approximately $30 million since its inception. The company will continue operating in Israel as a wholly owned subsidiary of Elligint, serving as the American group’s AI development arm. Stein, Laguna’s co-founder and CEO, will remain at the helm of the company and its Israeli operations.
Laguna’s business has evolved since its launch. The company initially focused on helping patients recover after leaving the hospital, using digital tools, data and behavioral health interventions to improve recovery and reduce the risk of readmission. It later developed an AI-powered care management platform that combines medical care plans with social, emotional and cultural factors to help care teams support patients.
Its current platform is designed to address another challenge facing health insurers: the administrative burden on care management teams. Nurses and social workers often spend a substantial portion of their working day documenting interactions with policyholders rather than focusing on the conversations themselves. Laguna’s technology uses AI to record conversations, perform quality control, extract insights in real time and assess interactions against the clinical and operational standards insurers are required to meet.
The acquisition will give Elligint access to technology designed to automate parts of that work, while providing Laguna with a larger customer base through which to expand its reach. Elligint’s systems currently support care management for more than 13 million policyholders in the United States. The company expects Laguna’s products to become a significant component of its offering to clients.
Elligint plans to double Laguna’s workforce in Israel, adding technical positions including software developers and AI engineers, as well as sales roles focused on the U.S. market. The company currently employs approximately 20 people and operates from Tel Aviv.
Laguna has raised approximately $30 million from investors including Pitango, LionBird, Arkin, HC9 and SemperVirens, as well as private investors. Its initial $6.6 million Seed round was announced in 2021 and co-led by Pitango HealthTech and LionBird. In May 2023, the company announced a $15 million Series A round co-led by SemperVirens and HC9 Ventures, bringing its total funding at the time to more than $21 million.
Stein previously helped establish the insurance business at RPX Corp. and later worked as an investor at Fortress Investment Group. Peled-Adam was a co-founder of digital health startup Vim and previously served as chief product officer at e-commerce company Bond, after holding senior positions at Microsoft and Amazon.
“We are embarking on an exciting new chapter for the company, one that will support our vision of improving the quality of medical care provided to millions of patients worldwide,” Stein said. “Our clients chose Laguna because it restores what care managers truly crave: time and the ability to provide a human touch to those they serve. Thanks to Elligint Health’s extensive reach among health insurance companies, we will be able to bring Laguna to many more care teams, all managed from our development center in Israel.”
“We are delighted to acquire Laguna, founded by two formidable entrepreneurs, and to establish a presence in Israel, a hub of technological innovation for the world’s leading companies,” said Chris Caramanico, CEO of Elligint Health. “Laguna’s artificial intelligence solutions integrate well into our value proposition, and we intend to expand operations at our Tel Aviv development center to continue supporting the platform’s growth.”
