Teladoc Health on Wednesday completed its acquisition of InTouch Health, a telemedicine company that serves the provider market.
Teladoc, a telemedicine giant that works with hospitals, insurers and employers, as well as direct to consumer, purchased InTouch Health for roughly $150 million in cash and 4.6 million shares of common stock. Teladoc officials valued the purchase price at about $600 million in January when they first announced the company's intention to buy InTouch Health.
Teladoc officials said the acquisition of InTouch Health, which works with more than 450 hospitals and health systems, will better position the company in the provider market. Teladoc plans to create a virtual-care service that spans provider-to-provider telemedicine capabilities for inpatient care, as well as consumer-to-provider applications for outside the hospital.
With the acquisition, Teladoc's services will include critical, chronic and everyday care.
Teladoc has seen significant financial gains in recent months, as telemedicine use soared in the wake of the COVID-19 outbreak. It remains to be seen whether telemedicine interest remains at the same level after the pandemic subsides; some research has indicated telemedicine visits have already been on the decline since many hospitals resumed non-emergency care in April.
Teladoc Health in April reported $180.8 million in revenue for 2020's first quarter, up 41% year-over-year and beating its own revenue guidance for the quarter by multiple millions of dollars. Revenue growth was in part driven by a sharp rise in telemedicine visits, with the company reporting $43.7 million in revenue from visit fees, up 93% from the same period in 2019.
Teladoc's quarterly visits reached 2 million, a first-ever for the company and up 92% year-over-year.
"With both our longstanding clients and new partners that have come to us since the start of the pandemic, there is a seismic shift in the urgency and readiness of hospitals and physician practices large and small to virtualize now," said Joe DeVivo, president of hospital and health systems at Teladoc, in a statement. DeVivo had previously served as InTouch Health's CEO.
Teladoc has spent millions on acquisitions in recent years, reflecting consolidation that's affecting all of healthcare.
Last year Teladoc acquired MédecinDirect, a Paris-based telemedicine provider that now serves as Teladoc's unit in France, for an undisclosed sum. In 2018, the company completed its purchase of Advance Medical, a virtual-care provider with a footprint in Europe, Asia and Latin America, for $352 million. One year prior, in 2017, Teladoc spent $440 million to acquire Best Doctors, a medical consultation company focused on complex medical issues.