LEWISVILLE, Texas--(BUSINESS WIRE)--
Teladoc,
Inc. (NYSE:TDOC), the first and largest telehealth platform in the
United States, today announced that it has signed a definitive agreement
to acquire HealthiestYou, a leader in mobile patient engagement, based
in Scottsdale, Arizona.
HealthiestYou is the leading telehealth consumer engagement technology
platform for the small- to mid-sized employer market. HealthiestYou
offers members a suite of tools to easily control their health care
access and costs, including physician locator, prescription pricing and
benefits lookup, all through a fully-integrated, best-in-class
interface. Teladoc’s highly scalable infrastructure will immediately
provide the telemedicine services to HealthiestYou’s product suite.
“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.
“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 generated 2015 revenues of $10 million, and approximately
$8 million for the first six months of 2016. It was net-loss and EBITDA
break-even for 2015 and for the first six months of 2016. Teladoc
reiterates its previously communicated commitment to achieving adjusted
EBITDA break-even in the fourth quarter of 2017.
This acquisition brings a strong, highly incremental distribution
network, and a sophisticated broker enrollment portal that enables
simple and streamlined administration, strengthening Teladoc’s position
in the fragmented small- and medium-sized employer market -- the most
underpenetrated segment in telemedicine. This high-growth segment
represents more than 50 percent of employed Americans, and is primarily
facilitated through broker networks.
“Acquiring HealthiestYou helps us to build upon our goal of offering a
broad suite of solutions to our employer and health plan partners, all
with a common goal of providing consumers with better access to high
quality care at a lower cost,” added Gorevic.
Jim Prendergast, Co-Founder of HealthiestYou, commented, “For years,
HealthiestYou has focused on making health care simpler to access and
easier to understand. Marrying both company’s innovative engagement and
utilization strategies, technology and service offerings will deliver on
our shared goal of providing the highest quality of care through easy
access to deliver significant cost savings.”
Andrew Lindner, Managing Partner of Frontier, a major HealthiestYou
shareholder, commented, “We are excited to join forces with a pioneer
and leader in the industry, Teladoc. HealthiestYou’s explosive growth,
industry-leading utilization, and traction with mid-market employers,
combined with Teladoc's highly scalable infrastructure and proven
execution capabilities, will extend Teladoc’s already substantial
leadership position in the telehealth industry.”
Under the terms of the agreement, the purchase price consists of $45
million cash and 6.96 million shares of Teladoc’s common stock. The
stock component was calculated by dividing $80 million by the average of
the closing prices for Teladoc stock for the 60 trading days prior to
June 28. The $45 million cash component will be funded in its entirety
with Teladoc’s recently expanded bank facility. Piper Jaffray
acted as exclusive financial advisor to Teladoc on this transaction.
William Blair & Co. acted as exclusive financial advisor to
HealthiestYou. Teladoc expects the acquisition of HealthiestYou to close
on July 1.
Business Outlook
Teladoc updated its outlook for the full year 2016:
-
Our previously communicated revenue expectation ranged from $118 to
$122 million dollars and is now increasing to a new range of $126
million to $130 million.
-
For the full year 2016, we confirm an expected net loss of $51.8
million to $53.8 million. With the issuance of additional shares for
this acquisition, we expect our net loss per share that had been
previously communicated as a range between $1.33 and $1.38 to now
range from a net loss per share of $1.22 to $1.27, based on a weighted
average of 42.5 million shares outstanding.
-
Our guidance for our Adjusted EBITDA loss range of $35 million to $37
million remains unchanged.
-
Our Membership, which we had expected to total approximately 16.5
million to 17.5 million members now increase to a predicted range of
17 million to 18 million members.
-
Our previously communicated outlook for total 2016 visits was 880,000
to 900,000 and is now increased to 915,000 to 945,000.
The acquisition of HealthiestYou does not change Teladoc’s timeline to
profitability and the company is still targeting adjusted EBITDA
breakeven by the fourth quarter of 2017.
Conference Call
Teladoc management will provide additional details of its acquisition of
HealthiestYou during a conference call today, Thursday, June 30, at 8
A.M. Eastern Standard Time. Stockholders and interested participants may
listen to a live broadcast of the conference call by dialing
877-201-0168 or 647-788-4901 for international callers, and referencing
participant code 42052261 approximately 15 minutes prior to the call. A
live webcast of the conference call will be available on the investor
relations section of the company’s web site and an audio file of the
call will also be archived for 90 days at ir.teladoc.com.
After the conference call, a replay will be available until July 13,
2016 and can be accessed by dialing 855-859-2056 or 404-537-3406 for
international callers, and referencing participant code 42052261.
About Teladoc
Teladoc, Inc. (NYSE:TDOC) is the nation’s leading provider of telehealth
services and a pioneering force in bringing the virtual care visit into
the mainstream of today’s health care ecosystem. Serving some 6,000
clients — including health plans, health systems, employers and other
organizations — more than 15 million members can use phone, mobile
devices and secure online video to connect within minutes to Teladoc’s
network of more than 3,000 board-certified, state-licensed physicians
and behavioral health specialists, 24/7. With national coverage and a
robust, scalable platform and a Lewisville, TX-based member services
center staffed by 400 employees, Teladoc offers the industry’s most
comprehensive and complete telehealth solution including primary care,
behavioral health care, dermatology, tobacco cessation and more. For
additional information, please visit www.teladoc.com.
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Source: Teladoc, Inc.