Lewisville-based telemedicine company Teladoc Inc. plans to acquire Scottsdale, Arizona-based employee health benefits app-maker HealthiestYou for roughly $125 million.
The purchase price consists of $45 million cash and 6.96 million shares of Teladoc’s common stock, the company said in a news release Thursday. The company valued the stock at about $80 million. Teladoc plans to close the acquisition Friday (July 1).
HealthiestYou generated 2015 revenues of $10 million, and about $8 million for the first six months of 2016. Before the acquisition was announced, the company had plans to add video visits with doctors on smartphones and online.
“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,” Tekadoc CEO Jason Gorevic said in a prepared statement. “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.”
HealthiestYou in November provided employees with an app to access a health care provider directory to read reviews, ratings and background information, compare prescription pricing for more than 5,000 drugs at more than 100,000 pharmacies, and receive customized alerts that help the employees manage their benefit and savings reminders.
Teladoc said that the acquisition will give the company better access to the market of small- and medium-sized employers, a segment they consider underserved by telemedicine companies. The acquisition also gives Teladoc a stronger distribution network and a sophisticated broker enrollment portal, Gorevic said.