DocGo plans to acquire telehealth platform Hicuity Health, part of its strategy to expand to offer healthcare both virtually and in patients' homes.

The company, which provides mobile health services, remote patient monitoring, ambulance services and a virtual care network, disclosed the deal alongside its second-quarter results. The company recorded a wider loss in the quarter as revenue declined due to the wind-down of migrant-related programs.

Under the agreement, DocGo would acquire Hicuity in exchange for assuming its existing indebtedness held by Perceptive Advisors, which is estimated to be about $52 million at closing and will now mature in December 2029.

Hicuity's preferred shareholder would receive equity representing about 2% of DocGo's currently outstanding common stock, and may receive an additional 3.5% stake if DocGo achieves a market capitalization of $250 million within three years of closing.

Additionally, Perceptive Advisors would provide up to an additional $50 million of debt financing to DocGo in multiple tranches, the first $12.5 million of which would be funded upon a services agreement under which DocGo would provide management-related services to Hicuity before the deal closes.

Hicuity provides virtual clinical care-including tele-ICU, virtual nursing and telemetry monitoring services--for health systems, hospitals and post-acute facilities. It recorded revenue of about $65 million in the past 12 months.

The deal "solidifies our company's unique position to bridge patient care across the entire continuum - from the hospital to the home," DocGo's Chief Executive Lee Bienstock said.

For the second quarter, DocGo posted a loss of $18 million, or 16 cents a share, compared with a loss of $13.3 million, or 11 cents a share, a year earlier.

Revenue fell to $73.4 million from $80.4 million, due to the wind-down of migrant-related programs, the company said.

For the full year, the company now expects revenue of $305 million to $310 million, compared with its prior guidance of $300 million to $315 million. The outlook does not include any expected contribution from the proposed acquisition of Hicuity.