Teladoc has announced plans to acquire Livongo creating the largest business in the teleheath space.
Merger terms seem fair to me-although there has been some disgruntlement on the part of investors in both companies.
On a pro-forma basis, the new company will start life with about 138 million outstanding shares and with a small amount of net debt.
Both Livongo and Teladoc enjoyed what can only be described as halcyon quarters for the period ending 6/30.
While I do not anticipate that growth for either company can continue at the rates each enjoyed last quarter, I do think the new enterprise will enjoy a CAGR of 35%+ for the next 4 years.
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