Chewy acquires Modern Animal to push deeper into pet healthcare

Chewy is buying Modern Animal , a tech-enabled veterinary platform with 29 clinics and a membership-driven care model, as it looks to expand beyond commerce and into full-stack pet healthcare.

The deal adds scale immediately. Modern Animal contributes more than $125 million in annualized revenue and expands Chewy’s clinic footprint from 18 to 47 locations nationwide.

Modern Animal operates a hybrid model that blends physical clinics with 24/7 virtual care, supported by its own software stack. Its clinics generate more than twice the industry average revenue per location, with mature sites delivering EBITDA margins above 20%.

For Chewy, the acquisition tightening the loop between care, prescriptions, and commerce. The company expects integration to drive a 15–20% increase in net sales per active customer across its veterinary network, fueled by higher engagement and cross-category spending.

The deal is expected to be EBITDA-dollar neutral in 2026, with contributions beginning in 2027 as clinics mature and synergies materialize.

The transaction is expected to close in Chewy’s second quarter of fiscal 2026, pending regulatory approval.

“Modern Animal perfectly complements our strategy to become the preeminent end-to-end pet health ecosystem, utilizing both owned and asset-light models. We are acquiring a high-growth platform with positive 4-wall EBITDA at the clinic level, a best-in-class operating engine, and over 100,000 member families. This deal accelerates our Vet Care expansion, drives higher long-term customer value, and creates a clear competitive moat in the industry.” – Chewy CEO, Sumit Singh.

Bottom Line: Chewy has insurance partnerships with Lemonade and Trupanion. While the deal doesn’t directly translate into pet insurance lead flow, it adds another layer of momentum to both relationships.