Teladoc Inc.TDOC , a premier telehealth services provider, has acquired Advance Medical, a worldwide leader in telemedicine and expert medical opinion services.
The deal will bolster Teladoc's global market leadership and provide its customers a broad range of medical services and a physician network.
The news was well received by the company's investors and the stock gained 2.26%, pushing it to a 52-week high of $52.6 on Jun 4.
The deal will create a comprehensive global healthcare platform with broader virtual care capable of serving companies and people everywhere. Advance Medical`s suite of international clinical capabilities along with Teladoc`s technology and operational scale will enable it to service U.S. multinational employers, having one-third of all employees abroad.
Via Advance Medical, Teladoc will get access to the Latin American and Asian markets, where private health insurance growth rate is more than that of the United States. This acquisition thus provides ample scope for growth.
This deal is in sync with Teladoc's strategy to acquire companies with complementary products and services and gain access to new markets instantly.
The company has accomplished a number of acquisitions in recent years. These purchases have expanded its distribution capabilities and broadened its service offerings.
Apart from buyouts the company is also busy forging partnerships and pacts that have added to its client list.
Teladoc has been quite successful in acquiring and integrating companies, which has accrued to its top-line growth. The same is reflected in the company's share price, which has gained 60% in a year's time compared with the industry 's gain of 10.9%.
Teladoc is fast gaining ground in the burgeoning telehealth services industry in the United States. Demand for the company's services is being fueled by increasing health care cost following inefficient care, duplication of services, significant waste and extreme variation in access, cost and quality of care.
Teladoc fills in this gap by providing superior quality of care through a platform that caters to consumer demand and physician availability in real-time and in various modalities such as video, web, mobile and telephone.
Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
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