Fast-growing telemedicine service provider Teladoc is getting bigger.
Thursday, the Purchase, New York-based public company announced that it has signed an agreement to acquireHealthiestYou, which specializes in mobile patient engagement. Teladoc is paying $45 million in cash plus 6.96 million shares of its stock, worth about $110 million at Thursday’s opening price of $15.85.
The deal should close Friday.
HealthiestYou, of Scottsdale, Arizona,offers a consumer engagement platform via small and mid-sized employer groups. Services include a physician finder, access to benefits information and prescription drug pricing information.
The acquisition will add Teladoc’s telemedicine services to HealthiestYou’s platform, the two companies said. It also gives Teladoc a stronger mobile offering and a greater foothold in the smaller employer market.
“Teladoc’s and HealthiestYou’s solutions are highly complementary and together will provide richer offerings, higher levels of consumer engagement and accelerated ROI for our partners,” Teladoc CEO Jason Gorevic said in a prepared statement.
“HealthiestYou’s explosive growth, industry-leading utilization, and traction with mid-market employers, combined with Teladoc’s highly scalable infrastructure and proven execution capabilities, will extend Teladoc’s already substantial leadership position in the telehealth industry,” added Andrew Lindner, managing partner of HealthiestYou investor Frontier.
HealthiestYou said that it posted $8 million in revenues for the first half of 2016 and is at break-even. The company had $10 million in revenues for all of 2015.
Teladoc has never been profitable but reiterated its previous plan to break even by late 2017. Teladoc on Thursday raised its expected 2016 revenue range to $126 million-$130 million from the previous estimate of $118 million-$122 million.
Source: Other