Teladoc Health (NYSE: TDOC) has announced it has entered into a definitive agreement to acquire InTouch Health for $600 million, consisting of approximately $150 million in cash and $450 million in shares of Teladoc Health. The deal is expected to close by the end of the second quarter. This move will integrate telehealth solutions and add more than 14,500 physician users and 450 health systems and hospitals to Teladoc’s profile.
Today marks a bold leap forward in Teladoc Health’s mission to transform how high-quality healthcare is accessed and experienced, making virtual care available for patients with even the most critical care needs. — Jason Gorevic, Chief Executive Officer, Teladoc Health
In the US, nearly 30 million people live more than one hour away from a trauma care center. A survey conducted in 2018 by Medicare Advantage found that 44% of its respondents had not visited their primary care physician in over a year. The ability to digitally connect with care providers gives those that are in rural areas the opportunity to receive quality care from any location. While the majority of employers offer telehealth options, utilization remains around 2%.
However, more health systems and hospitals are looking to invest in virtual care. As Teladoc’s own press release noted, research from JPMorgan in 2019 found that 40% of hospitals were planning to increase their budgets for telemedicine solutions. With this acquisition, Teladoc will be uniquely equipped to redefine the standard for where critical and specialty care can be accessed through a single virtual care resource that delivers longitudinal patient care.
With a continued focus on extending virtual care to new settings, expanding access and improving care coordination, our unmatched capabilities will extend both inside and outside the four walls of the hospital and empower care providers and patients alike. — Jason Gorevic, Chief Executive Officer, Teladoc Health
Financial Reporting and Business Outlook
Founded in 2002 and raising over $49 million in funding to date, InTouch Health serves more than 450 hospitals and health systems. InTouch Health is expected to generate 2019 revenues of approximately $80 million, growing approximately 35% versus the prior year. Once the acquisition goes through customary closing conditions, Teladoc will provide an updated full-year 2020 financial outlook and guidance for the combined company after adopting recent U.S. GAAP accounting pronouncements as well as completing valuation and related purchase accounting considerations for InTouch Health. The deal is expected to add roughly $80 million to Teladoc’s top line.
Teladoc Health management will provide additional details of the InTouch Health acquisition during the company’s presentation at the 38th Annual J.P. Morgan Healthcare Conference in San Francisco on Monday, January 13, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time). A live webcast of the presentation and supplemental presentation materials will be available on the investor relations section of the company’s website at ir.teladoc.com.
Now is the perfect time for us to join together with Teladoc Health and deliver to hospitals and health systems everywhere what they’ve been asking for – a single, enterprise solution to support their virtual care strategies and enable them to better engage with patients at every point along their healthcare journey. — Joseph M. DeVivo, CEO of InTouch Health
About InTouch Health
InTouch Health, ranked 2019 Best in KLAS for Virtual Care Platforms, is a telehealth services company that offers healthcare providers solutions to efficiently deliver virtual care for a broad array of use cases and healthcare environments. InTouch Health provides a reliable, dedicated cloud-based network and virtual care solutions designed to ensure connectivity for health systems, providers, and patients at all times. Today, InTouch Health supports more than 3,600 care locations around the world – including many of the top 20 U.S. health systems – as they deploy telehealth programs across their enterprises. To learn more visit www.InTouchHealth.com.
About Teladoc Health
A mission-driven organization, Teladoc Health, Inc. is successfully transforming how people access and experience healthcare, with a focus on high quality, lower costs, and improved outcomes around the world. Ranked #1 among direct-to-consumer telehealth providers in the J.D. Power 2019 U.S. Telehealth Satisfaction Study, the integrated services from Teladoc Health include telehealth, expert medical services, AI and analytics, and licensable platform services. With more than 2,400 employees, the organization delivers care in 130 countries and in more than 30 languages, partnering with employers, hospitals and health systems, and insurers to transform care delivery. For more information visit www.teladochealth.com.