Teladoc acquires Advance Medical for $352M
- Teladoc is expanding its global footprint with the purchase of worldwide telemedicine provider Advance Medical for $352 million.
- The deal, announced Monday, gives Teladoc a new presence in Latin American and Asia and the ability to offer new healthcare options to multinational businesses.
- “Combining Advance Medical’s suite of international clinical capabilities with Teladoc’s technology and operational scale, the company is now equipped to meet the needs of U.S. multinational employers, for whom one third of all employees live abroad,” the Dallas-based company said.
Health IT mergers and acquisitions are on the rise, and with growing acceptance of telehealth, it makes sense that a company like Teladoc would seek broader international brand recognition.
In a recent survey, roughly three-fourths of healthcare organizations said they offered or planned to offer telehealth services in 2017. Of those with existing telehealth programs, more than half said they had plans to grow their systems, including overseas.
The acquisition comes as Teladoc is dealing with less-than-rosy financials, and could be the shot in the arm the company needs going forward. Teladoc saw revenue grow 89% to $233.3 million in 2017, but posted a net loss of $106.8 million. During the year, adjusted EBITDA improved — from a $39.7 million loss in 2016 to a $12.5 million loss last year.
Teladoc’s paid membership grew 33% to 23.2 million, with total visits up 54% to nearly 1.5 million for the year. However, paid visits as a percentage of total visits declined, from 61% in 2016 to 54% last year.
Headquartered in Barcelona, Spain, Advance Medical reported revenue of about $63 million and adjusted EBITDA of $2 million in 2017. Revenue for the first quarter of 2018 totaled $17 million — with full-year projections exceeding $74 million.
The company has partnered with more than 300 large multinational employers and insurers in Europe, Asia, the U.S. and Latin America. Among its products are Global Care on Demand, a primary care program, and Virtual Medical Home, which pairs patients with medical specialists.
- FierceHealthcare Teladoc expands globally with $352M acquisition of Advance Medical