On August 5, 2020, Teladoc Health, Inc. (TDOC), well-known telemedicine provider, entered into a definitive merger agreement with Livongo Health, Inc. (LVGO) valued at $18.5 billion. Both companies, who excel in virtual health and chronic condition management, will create a comprehensive virtual healthcare delivery system — designed to improve health outcomes and reduce costs across the healthcare industry. The transaction is likely to conclude by the end of the fourth quarter of this year.
Livongo manufactures smart devices and leverages personalized health coaching to offer effective chronic disease management in the areas of diabetes, hypertension, weight and behavioral health. The two companies will create a platform equipped with AI (Artificial Intelligence) engine-driven ‘nudges,’ health coaches, therapists, as well as board certified physicians and specialists. It will also grant consumers access to real-time information and demonstrate ways to manage their well-being.
Not only will the union of these companies strengthen the global presence of Teladoc Health – it will also increase the telemedicine giant’s number of members in the growing Medicare and Medicaid markets. For Livongo, combining with Teladoc Health will allow the company to reach untapped populations overrun with chronic disease in the U.S. and abroad.
In recent months, we have seen healthcare insurance carriers and providers adjust to the needs of its consumers through their further acceptance and utilization of telemedicine. Teladoc Health is among them as they have executed on several initiatives to boost their own telehealth offerings — particularly during the novel coronavirus outbreak. In one week, TDOC partnered with NTCA, The Rural Broadband Association, which encompasses around 850 community-based telecommunication companies catering to the health needs of rural America.
The merger is forecasted to produce $1.3 billion in revenue this year alone, which indicates an increase of 85% over 2019.