With an objective to expand beyond the U.S. healthcare and medical devices industry, telehealth services provider Teladoc has apparently announced that it has concluded the acquisition of Advance Medical. As per reliable sources, the combined expertise and tools of both the firms would now be leveraged to cater more people who are employed by U.S. based businesses but live outside the nation.
Reportedly, the takeover deal has been finalized at USD 352 million out of which USD 292 million has been paid in cash and the remaining amount has been offered in the form of USD 60 million worth stocks.
For the record, the Massachusetts based Advance Medical has previously signed service agreements with more than 300 businesses across the globe. With satellite offices in Asia, South America, and Europe, the ‘Expertise on Demand’ telemedicine programs of the firm reportedly serve more than 35 million people globally. As per reliable sources, the remuneration portfolio of the company stood at about USD 17 million at the end of the first quarter of this year.
Sources familiar with the development claim that the firms delivering telehealth services can emerge as a viable alternative to in-person appointments for people who live hundreds of miles away from their healthcare provider’s nearest clinic or hospital.
According to analysts, the telemedicine market, a pivotal vertical of the global healthcare and medical devices industry is slated to surpass almost USD 64 billion by 2022.
With a market capitalization of about USD 3.3 billion, the New York-headquartered Teladoc provides telehealth services in around 125 nations and has more than 2,000 employees. Sources reveal that two of Advance Medicals’ co-founders, Marc Subirats and Carlos Nueno, are likely to join the leadership team at Teladoc.
The latest takeover is in line with Teladoc’s recent acquisition bids which includes its purchase of Best Doctors in 2017 for USD 440 million and the 2016 buyout of HealthiestYou for USD 155 million.