In a sign of the rising value placed on innovation in mental health care, behavioral health technology company Rethink First is reportedly being prepared for sale, with a potential valuation of up to $1.5 billion. According to Axios Pro, K1 Investment Management—Rethink’s strategic investor—is leading the sales process alongside investment bank Morgan Stanley. The news underscores the explosive growth of digital health platforms that cater to behavioral, educational, and corporate wellness needs.
Fast Growth and Strong Market Performance
Founded in 2007 and headquartered in New York, Rethink First has evolved into a top-tier behavioral health technology company with an impressive portfolio of solutions. The company serves a wide range of providers and systems through software that supports applied behavior analysis (ABA) data collection, staff training, and appointment management.
Financial sources cited by Axios Pro say Rethink’s annual recurring revenue (ARR) now ranges from $80 million to $100 million—a substantial increase from its estimated $20 to $30 million ARR in 2018. That revenue surge, paired with the company’s diverse customer base, makes it one of the most sought-after firms in the behavioral health tech market today.
K1 Investment Management initially invested in Rethink in 2020 for an undisclosed sum. Prior to that, the company had raised at least $12 million in funding, according to Crunchbase. K1’s backing has clearly helped accelerate Rethink’s growth trajectory and market reach.
A Comprehensive Suite of Behavioral Health Tools
As a behavioral health technology company, Rethink First offers tools specifically designed to support individuals with autism and other developmental conditions. Its platform delivers clinical and operational support to behavioral health providers, including data tracking, session planning, progress monitoring, and therapist training—core tools in ABA therapy delivery.
In addition to serving clinical providers, Rethink also delivers educational software to school districts across the U.S. This broad utility positions Rethink uniquely at the intersection of healthcare and education—two areas with increasing needs for scalable behavioral health support.
Expansion Through Workplace Wellness: The Whil Acquisition
One of the most strategic moves made by Rethink First in recent years was its acquisition of Whil, a global employee wellness platform. This addition has enabled the behavioral health technology company to extend its services into corporate environments, offering mindfulness and caregiver support tools to more than 30 Fortune 100 companies and covering over 12 million lives in 120 countries.
Whil’s inclusion significantly broadened Rethink’s value proposition, allowing it to support mental well-being across life stages and environments—from childhood to adulthood, from schools to boardrooms.
What Sets Rethink Apart in the Behavioral Health Tech Space?
Rethink’s ability to scale across industries and demographics is a major factor contributing to its high valuation. A few key strengths include:
- Multi-industry reach: Rethink serves education, healthcare, and corporate wellness sectors
- Comprehensive capabilities: The platform integrates ABA therapy support, scheduling, training, and progress tracking in one place
- Impressive ARR growth: Rapid growth in revenue is a clear indicator of product-market fit and customer loyalty
- Global wellness presence: Through Whil, the company now supports mental wellness at the enterprise level
These assets make Rethink First far more than just a niche solution. The company stands out as a behavioral health technology company with significant potential to continue shaping the digital health landscape.
A Strategic Investment with High Return Potential
K1 Investment Management’s involvement since 2020 has been instrumental in positioning Rethink for large-scale success. While the terms of the investment were not disclosed, it’s clear the partnership allowed Rethink to scale operations, improve product features, and pursue strategic acquisitions like Whil.
Sources indicate that the company’s potential sale could reach $1.5 billion—a staggering but plausible valuation given its financial performance, platform diversity, and growing global presence.
A sale of this magnitude would be a signal to the broader market that behavioral health technology company valuations are catching up with demand. As digital mental health tools become increasingly central to care delivery, enterprise wellness, and education, platforms like Rethink are becoming vital infrastructure.
The Industry-Wide Implications of the Sale
The buzz around Rethink’s potential sale represents more than just one company’s success. It points to broader trends in the behavioral health space:
- Increased demand for digital solutions: Providers and educators need tools to manage care delivery efficiently, especially amid workforce shortages
- Corporate interest in mental wellness: Businesses are investing heavily in tools to support employee mental health, opening up new verticals for health tech companies
- Investment in scalable infrastructure: Investors are seeing behavioral health platforms as long-term, revenue-generating assets
A $1.5 billion sale would establish a new benchmark for what a behavioral health technology company can be worth when it combines proven results with forward-thinking strategy.
Looking Ahead: Who Might Acquire Rethink?
There’s no public word yet on who might purchase Rethink First, but the buyer could come from a variety of spaces—healthcare systems, enterprise SaaS companies, private equity firms, or even multinational tech firms entering the behavioral health market.
Whoever acquires Rethink will inherit a platform that supports millions of users, crosses multiple sectors, and continues to innovate in a high-demand area. The deal could be one of the biggest in behavioral health tech to date—and could catalyze even more activity in the sector.
As the process unfolds, Rethink First is cementing its legacy as a trailblazing behavioral health technology company that’s redefining what digital care can look like for individuals, families, organizations, and systems around the world.
