Teladoc said Monday that it has bought Advance Medical, a fellow provider of telehealth software and services, in a $352 million cash and stock deal intended to add to its reach beyond U.S. borders.
Purchase, NY-based Teladoc (NYSE: [[ticker:TDOC]]) said that following its acquisition of Westwood, MA-based Advance Medical, more people who are employed by U.S-based businesses but live outside the country will be able to use the newly combined company’s tools.
Advance Medical says it employs 450 physicians, and has satellite offices in Europe, Asia, and South America. Its “Expertise on Demand” telemedicine programs are available to more than 35 million people globally through partnerships with 300-plus businesses, according to Advance Medical. The Massachusetts company’s revenues in the first three months of 2018 were about $17 million, Teladoc said.
Meanwhile, Teladoc says it provides telehealth services in 125 countries, and has more than 2,000 employees. The company’s first-quarter revenues this year were about $89.6 million, and its current market capitalization is nearly $3.3 billion.
The telemedicine industry is projected to grow to almost $64 billion worldwide by 2022. Companies that deliver such services say they can be an attractive alternative to in-person appointments for people who live dozens or even hundreds of miles away from their healthcare provider’s nearest hospital or clinic. Teladoc and Advance Medical’s competitors include American Well, HealthTap, and Doctor on Demand, which in April announced $74 million in new funding.
Teladoc said that under the terms of its deal with Advance Medical, which was completed last Thursday, it paid the latter company $292 million in cash, plus $60 million worth of Teladoc stock.
Two of Advance Medical’s co-founders, Carlos Nueno and Marc Subirats, will join Teladoc’s leadership team, the company said.
Teladoc’s stock price stood at $52.08 a share in late afternoon trading Monday, an increase of about 2.5 percent over Friday’s closing price. Shares in Teladoc more than doubled their value between the first and last trading days of 2017—from $16.50 per share on Jan. 3, 2017, to $34.85 a share on Dec. 29. So far, the stock’s hot streak has continued in 2018.
Other acquisitions Teladoc has made in recent years include its $440 million purchase of Best Doctors a year ago, and Teladoc’s acquisition of HealthiestYou in 2016, a deal valued at $155 million.
