Teladoc - The 600 Lb. Gorilla In The Virtual Health Solutions Space Becomes Even Mightier

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About: Teladoc Health, Inc. (TDOC)
by: Bert Hochfeld
This article is exclusive for subscribers.
Bert Hochfeld
Long/Short Equity, Growth, event-driven, Research Analyst
Summary

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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Teladoc to acquire Livongo-A transaction likely to work