Virtual care provider Teladoc, today announced it has acquired Advance Medical, an international virtual care provider of telemedicine services across Europe, Asia, Latin America for $352 million cash and stock. Under the terms of the agreement, the purchase price consists of approximately $292 million in cash and $60 million of Teladoc common stock.
With a broadened international footprint and the ability to offer an expanded set of clinical services worldwide, the combination creates the only global comprehensive virtual care platform capable of serving companies and people everywhere.
Founded in 1999, Advance Medical has built an integrated portfolio of high quality telehealth and expert medical opinion solutions partnering with with more than 300 large, multinational employers and insurers across Europe, Asia, Latin America and the U.S.
The acquisition introduces new services to Teladoc’s platform offering, like virtual medical home and clinical risk assessment, and will enable Teladoc to deliver care in 125 countries and more than 20 languages. Once the acquisition is closed, the combined company now has more than 2,000 employees and delivers care in 125 countries, in more than 20 languages – doubling Teladoc’s total health market opportunity. Advance Medical also adds offices in 8 locations around the globe, improves Teladoc’s on-the-ground presence in many markets, and for the first time adds presence in high-growth markets such as China and Brazil.
Around the world, 36% of people wait 4+ weeks to see a specialist; this acquisition gives global patients a single point of access for virtual care delivery, with local market expertise in 20+ languages. As countries around the world face escalating healthcare cost and access challenges, Teladoc’s ability to meet the most pressing care needs of members outside the United States significantly expands the company’s total market opportunity. With the addition of Advance Medical’s clinical and operational expertise in markets such as Latin America and Asia, where private health insurance growth rates are more than double that of the U.S., Teladoc is positioned to further accelerate the global adoption of virtual care.
Mr. Nueno and Mr. Subirats will join the Teladoc executive team, continuing to lead the Advance Medical business outside the U.S. Advance Medical generated 2017 Revenues of approximately $63 million and Adjusted EBITDA of approximately $2 million.
Advance Medical generated approximately $17 million of revenue for the first three months of 2018, and is expected to generate in excess of $74 million of revenue in 2018.
