Teladoc...Now To Big To Be Acquired
Teladoc Health, Inc. provides telehealth services worldwide. It offers a portfolio of services and solutions covering 450 medical subspecialties, such as flu and upper respiratory infections, cancer, and congestive heart failure. The company provides its services through mobile devices, the Internet, video, and phone. It serves employers of Fortune 1000 companies, health plans, health systems, and other entities.
Telemedicine has been around for decades, but it wasn’t until the internet bandwidth and next generation wireless technology caught up that made telemedicine more effective. Because of COVID-19, telemedicine has become main stream. Teladoc allows patients to see a licensed doctor at any time via a PC or mobile device, reducing the need to take time off from work. The simplest example that I can think of is a live video-conferencing between a person and a healthcare provider to diagnosis common illnesses like the common cold, flu and even COVID-19.
The global telehealth market is expected to expand at a 23% annual rate over the next few years, reaching $267 billion by 2026.
A year ago, Amazon unveiled a virtual care platform this week, dubbed Amazon Care, to bring telemedicine services to some of its Seattle-based employees covered by an approved Amazon health plan. Amazon Care lets users chat, video call, or receive an in-person visit from a Mobile Care nurse seven days a week through a partnership with Washington state-based Oasis Medical Group. Usually when Amazon enters an industry, companies run the other way. But Teladoc has been doing some gobbling up themselves over the years.
In 2018, Teledoc also purchased Advance Medical in June 2018 which was the leading telehealth provider outside the US.
In 2019, Teladoc announced plans to acquire InTouch Health, which sells telehealth software and services to hospitals, for $600 million in cash and stock.
And today, they made their largest acquisition to day.
Telehealth company Teladoc announced on Wednesday it would buy Livongo Health in a deal valued at $18.5 billion to meet the growing demand for virtual medical consultations induced by the coronavirus pandemic.
“This merger firmly establishes Teladoc Health at the forefront of the next-generation of healthcare,” said Jason Gorevic, CEO of Teladoc. The combination of Teladoc and Livongo creates a global leader in consumer centered virtual care, the companies said.
“This highly strategic combination will create the leader in consumer-centered virtual care and provides a unique opportunity to further accelerate the growth of our data-driven member platform and experience,” said Livongo Founder Glen Tullman.
On the news Teladoc sold off as Wall Street thinks Teladoc overpaid for Livongo. However, I took the opportunity to go long through options
as price pulled back into the weekly demand at $192.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance
