2020 is the year of healthtech.
The global COVID-19 pandemic has many paying greater attention to their health. Additionally, people are limiting physical interactions and opting for digital alternatives to traditional healthcare.
Those factors have boosted demand for health-focused tech companies, as many hit headlines for raising funding, going public or launching new products.
Now, Mountain View-based Livongo and New York-based Teladoc Health are continuing this trend with a massive new merger. On Wednesday, the two companies announced they have entered a definitive merger agreement to become a single healthtech entity. The rate at which the companies will exchange their stocks values this deal at $18.5 billion. Together, the two companies are worth an estimated $37 billion.
Teladoc Health’s platform allows people to create an appointment and then chat with a doctor via phone, video or messaging.
Teladoc Health is headquartered in Purchase, NY, with a handful of other offices nationally and globally. It’s currently hiring in New York for several open roles. When Teladoc went public in 2015, it was the only publicly traded telehealth company on the New York Stock Exchange.
Meanwhile, Livongo is a tech platform that helps people with chronic conditions, like diabetes or hypertension, manage living with their diseases. The platform uses connected health devices, data science and around-the-clock access to doctors to provide people with personalized health guidance. With the merger, users will have access to services from both companies on one platform.
“Livongo is a world-class innovator we deeply admire and has demonstrated success improving the lives of people living with chronic conditions,” Teladoc Health CEO Jason Gorevic said in a statement. “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.”
The two companies operate in slightly different spaces within the healthtech industry, but their services are complimentary, with a combined user base of more than 70 million people. By joining forces, both companies will be able to grow at an accelerated rate without being in competition. As of this week, Teladoc Health’s stock has almost tripled in value since January, while Livango's stock has shot up more than five times in value.
“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,” Livongo founder and executive chairman Glen Tullman added. “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.”
