- Telehealth company Teladoc Health announced its US$600m purchase of InTouch Health, a fellow telemedicine provider focused on enterprise offerings.
- The acquisition is meant to support Teladocs effort to build a single point of entry for integrated virtual care across conditions and is expected to close before the end of the second financial quarter.
- InTouch has partnerships with more than 450 hospitals and health systems, and supports more than 3,600 care sites worldwide.
Analysis and Comments
- InTouch's flagship platform, Solo, integrates with a number of electronic health records, and appears to be a full service intermediary (i.e., it works with scheduling, eligibility confirmation, e-prescriptions, patient surveys, payments) between provider and patient.
- The company also has a number of portable hardware consoles that enable remote medical care at the patient-side point of care.
- The transaction values InTouch at 7.5x EV/Sales. InTouch is expected to deliver $80m revenue in 2019 (+35% y/y), and the deal is being financed with ~$150m in cash and $450m in stock. The stock component implies 6-7% dilution (~5.3m incremental shares), at the current stock price, that could be additive to our forecast 2020 share count (~74.4m).
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