Teladoc to buy InTouch for $600M in telemedicine bet
Bloomberg—Teladoc Health agreed to buy closely held rival InTouch Health for $600 million in cash and stock, betting that demand will increase for digital medical consultations, or telemedicine.
The deal will expand Purchase, N.Y.-based Teladoc’s reach into more specialized virtual discussions between physicians at a hospital or health system, facilitating consultations as well as care in areas that lack specialists, like neurologists or neuronatologists to treat strokes or sick babies.
“Our vision is to be there, providing virtual care solutions at every front door of the healthcare system, and this really helps to take a giant step forward,” says Teladoc Chief Executive Officer Jason Gorevic.
Virtual medical consultations, such as those provided by Teladoc, enable patients to see doctors without having to travel or endure long waits. As a result, they’re regarded as a way to improve patient access to care while reducing costs, although the area has proven slow to take off among patients.
Even so, hospitals have increasingly embraced the trend in recent years, and Gorevic said the InTouch acquisition reflects that shift.
InTouch works with well-known names like HCA Healthcare, the Mayo Clinic and Kaiser Permanente, with 3,600 care locations and nearly 15,000 doctors using its platform. It brought in approximately $80 million in revenue in 2019, according to early financial results.
The deal consists of $150 million in cash and the remaining $450 million in Teladoc stock. It is expected to close in the second quarter.