Teladoc Health, Inc. TDOC recently acquired InTouch Health in a cash-stock transaction. Teladoc paid $150 million in cash and 4.6 million shares of Teladoc Health common stock as purchase consideration. The company announced the transaction on Jan 12, 2020.
InTouch Health provides effective telehealth solutions backed by its fully integrated virtual care platform – Solo by InTouch.
This acquisition will not only make Teladoc a leading provider of virtual care for health systems but also give its clients access to enhanced healthcare services and improved health outcomes. The deal is also likely to boost Teladoc’s presence in the virtual healthcare industry, where it already boasts a wide range of healthcare solutions that include acute visits, chronic conditions management, complex specialty care and remote surgery.
Moreover, Teladoc is well poised to gain from this deal as it comes at a time when the entire United States is grappling with the COVID-19 pandemic. It is to be noted that if there is an industry that is likely to have gained from the novel coronavirus outbreak, it is the telehealth industry, as healthcare providers are increasingly advocating for telemedicine to abide by stay-at-home orders and social distancing norms.
This, in turn, has spurred growth for telehealth market. Per research reports by Arizton, the U.S. telehealth market is projected to witness a CAGR of 30% during the 2019-2025 forecast period. Further, according to a report by Global Market Insights Inc., the U.S. telemedicine market is forecast to cross a valuation of $64 billion by 2025.
Furthermore, Teladoc is well-poised to benefit from increased demand from customersopting for telehealth services — an unprecedented trend. Spike in demand for virtual care services has led almost half of the healthcare providers to opt for telehealth services. Also, it seems that most of the hospitals and health systems are now striving to provide virtual care on a larger scale on the back of their technology-driven capabilities.
Shares of this Zacks Rank #2 (Buy) healthcare provider have soared 137.5% on a year-to-date basis against the industry’s decline of 3.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other stocks in the medical space, Cigna Corporation CI has been constantly expanding digital services suite. Other companies, includingMagellan Health, Inc. MGLN and Humana Inc. HUM have also developed telehealth services.
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Click to get this free report Humana Inc. (HUM) : Free Stock Analysis Report Cigna Corporation (CI) : Free Stock Analysis Report Magellan Health, Inc. (MGLN) : Free Stock Analysis Report Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report To read this article on Zacks.com click here.