Goleta Company Purchased for $600 Million

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Goleta Company Purchased for $600 Million
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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.

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a-1585669923 Jan 14, 2020 11:27 AM
Goleta Company Purchased for $600 Million

If you want to follow the path of a modern day ponzie scheme, follow this one. The sale demonstrates how private equity and the financialization of investing is devastating industries nationwide. Why? Because it's a full-fledged monopolization play financed by free money available to only the fortune few. The buyer in this case purports itself as a rags to riches story. An up-and-comer making all the right decisions and claiming to change and revolutionizing medicine. It's website reads of all the bait and catch adjectives but is sorely missing in any substance. If you read closely, you'll see how they're selling their service as profit mechanism, not as idea that betters society via improved patient outcomes by enhancing levels of care. Of course, not now or ever has this company shown a profit. It's only revenue increases are because of growth by acquisition (free money). It's simply piling on debt with investor monies and printing stock options like it's going out of style. All if it designed to promote wall street support and thus, with every bank having "skin in the game", nobody involved will wan't to do anything that chances it actually failing. Just. Like A. Ponzie. So bombs away! Totally protected from malinvestment and malfeasance. To note, TeleMedicine has been possible for decades. Interstate laws preventing medical advice over state lines has been one of the many obstacles. Yulan's robots were fun for a while, but difficult for most to accept in the face of job replacement and the destruction of personalized care. However, the idea of having access to a specialist while sitting at your home computer (or being in a remote hospital in Des Moines) has always kept the magic alive. The magic that's pure illusion and slight of financial hand. There's no value to society being added here. And everyone knows it. Good for the local guy "hitting his home run" though and walking away with more millions. Can only hope he shared the spoils with some of his (most of) team.

EndangeredLocal Jan 14, 2020 10:31 PM
Goleta Company Purchased for $600 Million

Totally, 100% wrong. Tell all that to the people who have had strokes, got treatment they wouldn't have had without telemedicine and are alive and functioning today.

mm1970 Jan 14, 2020 09:33 AM
Goleta Company Purchased for $600 Million

I remember seeing many people picketing several years ago "Shame on you InTouchHealth". I wonder what they were picketing? I don't remember. Have to google.

a-1585669923 Jan 14, 2020 08:48 AM
Goleta Company Purchased for $600 Million

Duh, how do you think the public was notified of such news? Good ol' press release... as the article states. If people paid for journalism and news we'd yield better results but instead people expect everything to be free and then complain about it.

a-1585669923 Jan 13, 2020 03:10 PM
Goleta Company Purchased for $600 Million

Great time to be let go from a job. Incredible anount of high-paying jobs available from coast to coast. Of course, you must have some skills.

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