Teladoc Completes $125 Million Acquisition of HealthiestYou to Expand Virtual Care Access for Small and Midsize Employers

Teladoc, a telemedicine company headquartered in Louisville, Texas, has recently acquired HealthiestYou. Headquartered in Scottsdale, Arizona, HealthiestYou developed an app designed for employee health services. According to MobiHealth News, the total value of the acquisition reached $125 million, with the deal comprising both cash and stock.

HealthiestYou secured $30 million in financing from Frontier Capital in November 2015. The company’s app provides users with a directory of healthcare providers based on location, allowing them to access ratings, reviews, and background information. Currently, the app enables price comparisons for over 5,000 medications across more than 100,000 pharmaceutical companies, and offers customizable personalized reminders to help users obtain optimal care.

Complementary Advantages

At the end of last year, Teladoc issued a statement announcing plans to add video consultation capabilities for smartphones, internet-connected TVs, and other devices. Additionally, Teladoc reported that HealthiestYou generated $10 million in revenue in 2015 and $8 million in the first six months of 2016.

“This acquisition presents an excellent opportunity for Teladoc and HealthiestYou to deepen their collaboration. Both companies are industry pioneers, sharing a similar philosophy of advancing telemedicine and empowering users to make autonomous decisions regarding their healthcare. Teladoc and HealthiestYou are highly complementary; by working together, they can offer users a richer array of choices, drive higher levels of user engagement, and improve return on investment for partners,” said Jason Gorevic, CEO of Teladoc.

Teladoc has completed the acquisition, paying HealthiestYou $45 million in cash and 6.96 million shares of Teladoc common stock, valued at $80 million. In a statement, Teladoc said the merger would help the company expand its market by serving more small and medium-sized enterprises through telemedicine.

“For years, HealthiestYou has been dedicated to simplifying access to healthcare services and making the tools used more understandable. This collaboration demonstrates our shared goal of providing users with the highest quality service through the most user-friendly experience.”

Teladoc Achieves Strategic Expansion Through Acquisitions

Previously, Teladoc has repeatedly expanded its service offerings through strategic acquisitions. In June 2015, the company privately acquired Stat Doctors. Its products connect patients with physicians via mobile apps, websites, and telephone services, enabling patients to consult on health and medical issues through the platform. Earlier, in September 2013, Teladoc acquired Consult a Doctor, a Miami Beach–based company whose primary clientele also consisted of employees of small and medium-sized enterprises.

In addition to announcing the acquisition, Teladoc raised its 2016 revenue guidance. The previous revenue forecast of $118–122 million was adjusted to $126–130 million. Furthermore, the company revised its expected net loss per share from $1.33–$1.38 to $1.22–$1.27, based on 42.5 million shares outstanding. It projects having approximately 18 million members and facilitating around 945,000 telehealth visits in 2016.