Telemedicine services provider Teladoc has agreed to acquire mobile-app-based physician locator HealthiestYou using borrowed money and stock in a deal valued at $125 million, Teladoc has announced.
Purchase terms cited in a news release list a cash component of $45 million, “funded in its entirety with Teledocs' recently expanded back facility,” and 6.96 million shares of the its publicly traded common stock valued at $80 million, based on the average closing price over a 60-trading-day period ending June 27, or about $11.49 per share.
Privately held HealthiestYou, based in Scottsdale, Ariz. had revenues of $10 million in 2015 and was described as “net-loss and EBITDA break-even" that year.
“This is a unique opportunity to combine two leaders in the telehealth industry who share a common philosophy of driving telemedicine engagement and enabling consumers to take charge of their own health care decisions,” said Teledoc CEO Jason Gorevicr. The two company's products “are highly complementary and together will provide richer offerings, higher levels of consumer engagement and accelerated ROI for our partners.”
Telehealth providers are hoping to cash in on the growing trend toward managed care and more consumer-directed and funded health insurance schemes with far higher deductibles than before, placing far more of patients' financial “skin in the game.” Insurers are looking to partner with telehealth service providers.