Under terms of the acquisition, HealthiestYou purchase price consists of $45 million cash and 6.96 shares of Teladoc common stock worth $80 million. Teladoc expects the acquisition of HealthiestYou to close on July 1.
Available to individuals and employers, HealthiestYou can be incorporated into any employee benefit plan as the first line of care, helping them avoid expensive visits to the ER, or urgent care.
Currently over 4,000 employer groups across the U.S. provide the HealthiestYou service to their employees with a telehealth app that enables users to conveniently manage their healthcare needs 24/7 and find the most cost-effective options within their insurance plan.
For Teladoc, the acquisition brings a strong, highly incremental distribution network, and a sophisticated broker enrollment portal that enables simple and streamlined administration, strengthening its position in the fragmented small- and medium-sized employer market — the most underpenetrated segment in telemedicine. This segment makes up more than 50 percent of employed Americans, and is primarily facilitated through broker networks.
HealthiestYou generated 2015 revenues of $10 million, and approximately $8 million for the first six months of 2016.
“This is a unique opportunity to combine two leaders in the telehealth industry who share a common philosophy of driving telemedicine engagement and enabling consumers to take charge of their own health care decisions,” said Jason Gorevic, Teladoc chief executive officer in the official announcement. “Teladoc’s and HealthiestYou’s solutions are highly complementary and together will provide richer offerings, higher levels of consumer engagement and accelerated ROI for our partners.”