Teladoc Health Acquires MédecinDirect to Expand into the French Telehealth Market

VCBeat (WeChat Official Account: vcbeat) has learned that on March 19, 2019, U.S. telehealth unicorn Teladoc Health announced the acquisition of Paris-based MédecinDirect to strengthen its international business. MédecinDirect provides confidential medical consultation services via telephone and internet. The specific terms of the acquisition were not disclosed.

MédecinDirect has more than 40 leading insurance partners, accounting for nearly half of the 30 largest private health insurers in France, with a well-established customer base. Teladoc stated that by integrating its virtual care services with MédecinDirect’s existing medical operations, the company would benefit from a broader range of clinical services.

MédecinDirect provides Teladoc with a large existing customer base, which will give the company a comfortable foothold in a new country. MédecinDirect’s existing customers will gain access to Teladoc’s full suite of services.

“We have achieved tremendous success in the virtual care market, and our partnership with Teladoc Health will enable us to meet the healthcare needs of more individuals, ultimately helping to improve the state of healthcare across China,” said Francois Lescure, CEO and Co-Founder of MédecinDirect, in a statement. “We appreciate Teladoc Health’s vision for the healthcare experience and look forward to transforming the way people access medical services.”

“As we continue to focus on global expansion, we will become the market leader in France, with the ability to directly impact the country’s healthcare services,” said Carlos Nueno, President of Teladoc Health International, in a statement. “Building on the successful establishment of MédecinDirect, we will provide multinational clients with a comprehensive suite of virtual care services.”

Teladoc makes no secret of its global expansion ambitions, with acquisitions serving as its preferred tool to achieve this goal. Last year, the company acquired Spain-based Advance Medical for $352 million. This transaction has spurred the company’s development of new businesses in Latin America and Asia.

In fact, the company reported that international subscription revenue grew to $73.7 million in 2018, a 302% increase. In the fourth quarter of 2018, international business visits reached 205,000, with revenue amounting to $24.4 million. Teladoc CEO Jason Gorevic stated last month, during a discussion with analysts on the company’s fourth-quarter and full-year 2018 performance, that its international market performance in 2018 exceeded expectations.

The acquisition is expected to be completed in the first half of this year, with MédecinDirect becoming Teladoc’s French office. In addition to the United States, Teladoc currently operates in the United Kingdom, Australia, Canada, Spain, Portugal, Hungary, China, Chile, and Brazil.

Founded in 2002, Teladoc is the first and currently largest telemedicine platform in the United States. It was established by Dr. Byron Brooks, a former NASA flight surgeon, and serial entrepreneur Michael Gorton. The platform enables users to consult with physicians anytime (24/7) and from anywhere via mobile devices, the internet, video, and telephone. Teladoc went public on the New York Stock Exchange in 2015, under the ticker symbol TDOC.

(Compiled by: Tan Xin)