Teladoc buys Advance Medical for $350m
June 19, 2018
New York-based teleheath company Teladoc has acquired Spanish virtual care provider Advance Medical for $350m to broaden its international footprint and give it the ability to offer an expanded set of clinical services worldwide.
The combination should create a global virtual care platform capable of serving companies and people everywhere.
With the addition of Advance Medical, Teladoc builds on its track record of acquiring and integrating companies with common purpose, complementary capabilities and access to new markets. 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 US multinational employers, for whom one third of all employees live abroad.
“Today we bring together two companies who, by consistently putting the consumer first, have proven the transformative power of offering full-spectrum virtual care,” said Jason Gorevic, CEO of Teladoc. “This acquisition advances our strategy to continually expand our product portfolio, as well as our operational footprint in attractive global markets.”
As countries around the world face escalating healthcare cost and access challenges, Teladoc’s ability to meet the most pressing care needs of members outside the USA significantly expands the company’s total market opportunity. With the addition of Advance Medical’s clinical and operational expertise in markets such as Latin America and Asia, where private health insurance growth rates are more than double that of the USA, Teladoc is positioned to accelerate the global adoption of virtual care.
“We share Teladoc’s belief that virtual care should be comprehensive in nature, and provide answers and outcomes for people regardless of their location or medical condition,” said Carlos Nueno, co-founder of Advance Medical. “Our clients have increasingly demanded high-quality virtual care at scale, and now we have the ability to bring this meaningful change to the healthcare system.”
His fellow co-founder Marc Subirats added: “With the ability to harness the rapid pace of medical innovation, deliver an unsurpassed commitment to clinical quality, and maintain our unwavering patient-centric vision, there is no doubt we will have a profound consumer impact as we continue to expand access to high quality care.”
Nueno and Subirats will join the Teladoc executive team, continuing to lead the Advance Medical business outside the USA.
Teladoc completed its acquisition of Advance Medical at the end of May. Under the terms of the agreement, the purchase price consists of approximately $292m in cash and $60m of Teladoc common stock. Latham & Watkins acted as Teladoc’s legal advisor and White & Case acted as Advance Medical’s legal advisor.
Advance Medical generated 2017 revenues of approximately $63m and adjusted EBITDA of approximately $2m. Advance Medical generated approximately $17m of revenue for the first three months of 2018, and is expected to generate in excess of $74m of revenue in 2018.
Founded in 1999, Advance Medical operates worldwide in telemedicine and medical opinion services. Partnered with more than 300 large, multinational employers and insurers across Europe, Asia, Latin America and the USA, it has built an integrated portfolio of telehealth and expert medical opinion services, including Global Care on Demand and the Virtual Medical Home.