Markets

Teladoc Health, Livongo Health To Merge In A Deal Worth $18.5 Bln

(RTTNews) - Teladoc Health Inc., (TDOC), a provider of virtual-care services, Wednesday said it is acquiring Livongo Health Inc., a Applied Health Signals company, in a deal stock-and-cash deal worth $18.5 billion.

Under the terms of the deal, each share of Livongo will be exchanged for 0.5920x shares of Teladoc Health plus cash consideration of $11.33 for each Livongo share, representing a value of $18.5 billion based on the closing price of Teladoc Health shares as of August 4, 2020.

The merger has been unanimously approved by the Board of Directors of each company.

Upon completion of the merger, existing Teladoc Health shareholders will own about 58 percent and existing Livongo shareholders will own around 42 percent of the combined company.

The combined company will have expected 2020 pro forma revenue of around $1.3 billion, representing year over year pro forma growth of 85 percent.

"This merger firmly establishes Teladoc Health at the forefront of the next-generation of healthcare," said Jason Gorevic, CEO of Teladoc Health. "Livongo is a world-class innovator we deeply admire and has demonstrated success improving the lives of people living with chronic conditions. Together, we will further transform the healthcare experience from preventive care to the most complex cases, bringing 'whole person' health to consumers and greater value to our clients and shareholders as a result."

Gorevic will be the CEO of the combined company.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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