Teladoc said it intends to acquire mobile patient engagement company, HealthiestYou.
HealthiestYou is a telehealth consumer engagement technology platform in the small to mid-sized employer market that offers a suite of tools to help its members control healthcare access and costs, including physician locator, and prescription pricing and benefits.
According to officials, Teladoc's infrastructure will provide telemedicine services to HealthiestYou's software. Additionally, the acquisition creates a highly incremented distribution network and strengthens Teladoc's position in the small to mid-sized employer market.
"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 healthcare decisions, Teladoc CEO Jason Gorevic said in a 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," he added.
HealthiestYou generated $10 million of revenues in 2015, and about $8 million of revenues for the first six months of 2016. Under the agreement, the purchase price is $45 million cash and 6.96 million shares of Teladoc's common stock. The stock was calculated by dividing $80 million by Teladoc's average closing stock price.
Teladoc expects the acquisition of HealthiestYou to close on July 1.
"For years, HealthiestYou has focused on making healthcare simpler to access and easier to understand," Jim Prendergast, HealthiestYou's co-founder, said in a statement. "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."