Goleta Company Purchased for $600 Million
InTouch Health CEO Joesph DeVivo demonstrating their Lite V4 product (Photo: InTouch Health)
By edhat staff
InTouch Health based in Goleta will be acquired by Teladoc for $600 million the companies announced Sunday.
Founded in 2002, InTouch Health was created to provide a telehealth network and services to support access and delivery of high-quality clinical care to any patient at any time, while reducing overall costs of care. They've developed into building complex hardware and software systems earning the description of the leading provider of enterprise telehealth solutions for hospitals and health systems.
Teladoc Health, Inc. is a multinational telemedicine and virtual healthcare company based in the United States that primarily includes telehealth, medical opinions, AI and analytics, and licensable platform services.
According to 2019 JPMorgan research, 40% of hospitals surveyed reported planning to increase their budgets for telemedicine solutions. Another 2018 L.E.K. Hospital Study Survey reported 61% of hospital revenue was forecasted to come from managed and value-based care models by 2021.
‘‘Today marks a bold leap forward in Teladoc Health’s mission to transform how high-quality healthcare is accessed and experienced, making virtual care available for patients with even the most critical care needs,” said Jason Gorevic, CEO of Teladoc Health, in a press release. “Bringing these companies together will make Teladoc Health the clear virtual care leader across every front door of healthcare, further accelerating the adoption and impact of virtual care for millions of people around the world.”
InTouch Health has partnered with over 450 hospitals and health systems with more than 14,500 physician users globally, and they hope this new acquisition will make the company uniquely equipped to meet the growing needs of the provider market with one single integrated solution.
“Now is the perfect time for us to join together with Teladoc Health and deliver to hospitals and health systems everywhere what they’ve been asking for – a single, enterprise solution to support their virtual care strategies and enable them to better engage with patients at every point along their healthcare journey,” said Joseph M. DeVivo, CEO of InTouch Health. “Whether it’s extending clinical capabilities, augmenting physician resources or supporting optimized outcomes, we are that trusted single partner to support them.”
The transaction is expected to close by the end of Q2, subject to customary closing conditions. Under the terms of the agreement, the purchase price of $600 million will consist of approximately $150 million in cash and $450 million of Teladoc Health common stock. InTouch Health is expected to generate 2019 revenues of approximately $80 million, growing approximately 35% from 2018.
InTouch Health employs approximately 400 people at their Goleta Headquarters and 125 of those employees were hired in 2019. There was no mention of restructuring or layoffs as a result of the acquisition in the press release.