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Teladoc Health, Livongo merge in massive deal
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The merger is expected to create a comprehensive platform for virtual healthcare delivery.
Teladoc Health, a leading company in virtual care, and Livongo, a leading company in applied health signals, have announced they are mergining in a massive $18.5 billion deal.
According to a news release, the merger will represent an opportunity to transform the delivery, access, and experience of healthcare. The new company is expected to create substantial value across the healthcare ecosystem by enabling physicians everywhere to offer high quality, personalized, technology-enabled longitudinal care improving outcomes and lowering costs.
The merger will create a global leader in consumer-centered virtual care with an expected 2020 pro forma revenue of about $1.3 billion representing 85 percent pro forma growth year over year, the release says.
“This merger firmly establishes Teladoc Health at the forefront of the next-generation of healthcare,” Jason Gorevic, CEO of Teladoc Health, says in the release. “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.”
“This highly strategic combination will create the leader in consumer-centered virtual care and provides a unique opportunity to further accelerate the growth of our data-driven member platform and experience,” Glen Tullman, Livongo founder and executive chairman, says in the release. “By expanding the reach of Livongo’s pioneering Applied Health Signals platform and building on Teladoc Health’s end-to-end virtual care platform, we’ll empower more people to live better and healthier lives. This transaction recognizes Livongo’s significant progress and will enable Livongo shareholders to benefit from long-term upside as the combined company is positioned to serve an even larger addressable market with a truly unmatched offering.”
