A global leader in virtual care, Teladoc Health has announced its acquisition of Intouch Health for $600 million. The deal is expected to boost Teladoc’s top line and increase its presence in hospitals and health systems. It will also combine the company’s expertise in consumer-based telehealth services with Intouch’s provider-to-provider telemedicine capabilities.
“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,” said Joseph M. DeVivo, chief executive officer at InTouch Health. “Whether it’s extending clinical capabilities, augmenting physician resources or supporting optimized outcomes, we are that trusted single partner to support them.”
This acquisition will make Teladoc Health the only virtual care provider covering a full range of services. Critical and chronic conditions, as well as everyday care, will be tended to using a single solution across all sites of care including homes, pharmacies, clinics, hospitals, and others. It will also add 14,500 doctors at 450 hospitals and health systems that InTouch works with. InTouch's telemedicine platform also adds a wide set of more than 40 clinical uses, including in the hospital setting, which will broaden Teladoc's reach.
InTouch Health generated approximately $80 million in revenue in 2019, up 35% year over year. The acquisition would add more than 30% to the $546 million to $550 million in revenue Teladoc's management expected to record last year. However, the company doesn't plan to add the potential additional revenue to its 2020 guidance until the deal closes.
The $600 million deal will include $150 million in cash and $450 million of Teladoc common stock. The company’s stock was valued at $85.37 at the market close on January 10. The deal is expected to close by mid-2020. Lazard acted as sole financial advisor and Latham & Watkins LLP acted as legal advisor to Teladoc Health in the transaction. J.P. Morgan acted as sole financial advisor and Wilson Sonsini Goodrich & Rosati LLP acted as legal advisor to InTouch Health.