Comprehensive M&A data with integrated detailed company information

Teladoc agrees USD 600mn price tag for InTouch
Posted on Monday, 13 January 2020 10:35
Teladoc Health has reached an agreement to pick up InTouch Health for USD 600.00 million to create a leader in providing virtual care for both hospitals and health systems.

Under the terms of the transaction, the acquiror is offering USD 150.00 million of the consideration in cash and the remaining USD 450.00 million in common stock.

The deal positions Teladoc as the partner of choice for health systems seeking a single solution for their entire virtual care strategy and establishes the company as the only virtual care provider covering the full range of acuity from critical to chronic and everyday care.

InTouch is partnered with more than 450 hospitals and health systems with 14,500 physician users globally, supporting 40+ clinical use cases.

It provides software that allows patients to communicate or have consultations with doctors without having to go into clinics and endure the travel and long waits.

The announcement comes as demand for virtual care services is poised for significant growth, as favourable reimbursement tailwinds increasingly equip hospitals and health systems.

According to JPMorgan research in 2019, as cited in the press release, 40.0 per cent of hospitals surveyed are planning to increase budgets for telemedicine, with 61.0 per cent of hospital revenue forecasted to come from managed and value-based care models by 2021.

InTouch is expected to generate 2019 revenues of USD 80.00 million, representing a 35.0 per cent increase year-on-year.

Completion of the acquisition is slated for the second quarter of 2020 and remains subject to the usual raft of conditions.

Shares in Teladoc closed at USD 85.16 on 10th January 2020, an almost unchanged result day-on-day and representing a market capitalisation of USD 6.16 billion.

The company is billed as a global leader in virtual care and is ranked as the number one among direct-to-consumer telehealth providers in the JD Power 2019 US Telehealth Satisfaction Study.

During the nine months to 30th September 2019, Teladoc generated total revenue of USD 396.82 million, a 34.4 per cent increase on USD 295.17 million in the corresponding period of 2018.

© Zephus Ltd