Discovery is paying up to R958-million for Icario, a US member-engagement firm serving government health plans.
Discovery’s head office in Sandton. Image: Boogertman and Partners
Discovery is buying its way deeper into US health technology. On 1 September, two months after its financial year ended and two days before it reported annual results, the group’s wholly owned US subsidiary Vitality Group International acquired 100% of Icario Holdco, a US healthcare services company that builds member-engagement tools for government-funded health plans.
Discovery paid US$27-million (R435-million) in upfront cash, with contingent consideration of up to a further $32.5-million (R523-million) that would take the total to $59.5-million (R958-million). The top-up depends on two things: Icario holding specified revenue levels against an agreed baseline, and an earn-out tied to growth in contracted annual recurring revenue.
The transaction was concluded on a debt-free and cash-free basis. Because it closed after 30 June, none of Icario’s revenue or profit appears in Discovery’s just-released numbers.
What Discovery has bought is not yet fully valued. The purchase price allocation remains provisional, with the valuation of closing net assets, customer relationships, contingent consideration and any resulting goodwill still to be finalised. The group said it would apply a multi-period excess earnings model to value the customer relationships.
Icario covers about 11 million lives and specialises in getting members of US government-sponsored plans – Medicaid, Medicare Advantage and Dual Eligible Special Needs plans – to engage with their own healthcare. Discovery said the acquisition accelerates its growth in that government-sponsored segment and strengthens “member activation, engagement and health plan capabilities”, while opening cross-selling opportunities.
The purchase is the latest in a steady run of US deals.
Discovery’s US health business, VitalityHealth USA, bought workplace-wellness firm WellSpark in November 2024 and Ramp Health in March 2026, and has finalised a partnership with HealthEquity, the largest US custodian of health savings accounts by number of accounts, with more than 10 million of them. The unit grew revenue 22% over the year, lifted its footprint to 10 health plans and closed the period with 3.6 million covered members. It is rolling out what Discovery calls “Vitality AI-enabled engagement solutions”.
The AI-and-data thread runs through Asia, too. Amplify Health, the health insurtech in which Discovery holds 25% alongside AIA, has signed a three-year partnership with Star Health, India’s largest standalone health insurer, to deploy “AI-led claims intelligence and healthcare analytics solutions”. Discovery said the business is also selling integrated products with multi-year value-share economics in four key markets.
The offshore moves show where Discovery is spending outside South Africa: an AI-driven healthtech footprint in two of the world’s largest health markets, bolted onto its Vitality behavioural platform. Back home, the same push shows up as a cost. Vitality AI produced a R299-million loss in FY2026, up more than 200%, with investment accelerating across customer engagement, healthcare, underwriting and operational processes – though Discovery notes that the line also carries other Vitality central costs. – © 2026 NewsCentral Media
Follow the story
