Leading Telehealth Firm Teladoc Health Announces a $18.5 Billion Merger with Livongo Health. Read on to know the complete details.
Teladoc Healthcare is a multinational firm based in the United States founded by Michael Gorton and Byron Brooks in the year 2002. It is recognized globally as the first and the largest company to be providing healthcare solutions and information over a virtual platform. It operates intending to disseminate the adoption of telemedicine on both individual and organizational levels.
The popularity of Teladoc has surged during the pandemic owing to its services which have provided a safer and cheaper substitute to accessing healthcare for both the patients and the professionals.
The Minutiae of the Deal
To expand its services and reach to more audience, Teladoc declared a merger with Livongo Health, a data-based virtual healthcare provider specializing in the field of diabetes, founded in 2008 by Glen Tullman. The deal was settled at $18.5 billion.
The accord was announced on 5th of August, 2020 and stated that the Investors shall be secured with 0.592 Teladoc health shares and an additional cash value of $11.33 for each Livongo share they held. Overall, 42% of the shares of the new firm shall be held by Livongo Investors. The merger shall function under the name of Teladoc Health with its headquarters located in Purchase, NewYork and Teladoc’s president Jason Gorevic as the CEO of the combined firm. The Board of Directors shall consist of 8 members from Teladoc Healthcare and 5 members from Livongo Healthcare.
What to Expect from the Merger?
Teladoc, which became public in 2015, is referred to as the ‘Amazon of Healthcare’ owing to its successful turnover even amidst losses, and the ability to adapt and cater to the demands of its clients. Both Livongo and Teladoc have reported a phenomenal growth in their revenue since they went public. The merger is expected to generate a revenue of about $1.3 billion. Moreover, the agreement also provides a reliable platform for information and healthcare solutions, during the dynamic conditions of the pandemic, for a variety of problems that were neither a part of Teladoc nor Livongo policies before the acquisition.
The successful existence of any organization lies in its ability to comprehend the demands of its clients, provide innovative solutions and adapt itself to the advances in technology. The alliance between Teladoc and Livongo is expected to soar throughout the pandemic but its success in future endeavours relies on how well the company comprehends the change in needs of the clients and acclimates to post pandemic circumstances where the need for a tele healthcare platform can plummet.
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