DocGo stock soars after SteadyMD acquisition to expand virtual care reach

Investing.com -- DocGo Inc (NASDAQ:DCGO) stock surged 34.6% in after-hours trading Monday following the company’s announcement that it has acquired virtual care platform SteadyMD, Inc.

The acquisition will combine SteadyMD’s nationwide virtual clinician workforce with DocGo’s mobile health services, creating a more comprehensive healthcare delivery platform. SteadyMD is expected to service over 3 million patients in 2025 and maintains a roster of more than 600 clinicians across all 50 states.

DocGo CEO Lee Bienstock said the acquisition "marks an exciting milestone in DocGo’s mission to make high-quality, technology-powered healthcare more accessible." The company aims to provide "healthcare at any address" by integrating SteadyMD’s virtual care capabilities with its existing mobile health infrastructure.

According to the announcement, SteadyMD is projected to generate approximately $25 million in revenue in 2025 and become EBITDA positive by 2026. DocGo plans to update its 2025 revenue and adjusted EBITDA guidance to reflect the transaction during its upcoming earnings call in early November.

SteadyMD’s co-founders, CEO Guy Friedman and COO Yarone Goren, will join DocGo’s leadership team. Friedman expressed enthusiasm about the merger, stating that joining forces with DocGo provides "resources to extend our vision of providing a more personalized, patient-centered approach to virtual care at an even larger scale."

DocGo plans to fund the acquisition through existing cash on its balance sheet. The company indicated it will continue to seek additional opportunities for acquisitions and partnerships that expand its capabilities while enhancing shareholder value.

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