The combined company will offer a range of virtual care options for markets that include employers, health plans and health systems. The deal also allows Teladoc to develop global expansion plans.
Telehealth platform Teladoc Inc. has finalized its $440 million acquisition of the medical consulting company Best Doctors.
“Today we take a tremendous step forward as we continue to deliver on our promise to transform the healthcare experience; to provide an unprecedented, single-point of access for resolution to the widest spectrum of medical conditions, delivered via a virtual platform,” Teladoc CEO Jason Gorevic said Monday in a media release.
The deal, which was announced last month, was touted by the two companies as a “marriage” of Purchase, NY-based Teladoc’s technology, engagement capabilities, and scalable platform with Best Doctors’ network of medical experts, analytics, patient decision-support, and regional expertise. The combined company will offer virtual care services for markets that include employers, health plans, and health systems. The deal also allows Teladoc to develop global expansion plans.
Under the definitive agreement announced on June 19, Best Doctors shareholders will receive $375 million in cash and $65 million in Teladoc common stock from the issuance of 1.9 million shares.
Best Doctors CEO Peter McClennen will become president of the Best Doctors division under Teladoc. He will also receive a stock option award covering 123,320 shares of Teladoc common stock and a restricted stock unit award covering 58,824 shares of Teladoc common stock. The stock option awards each have an exercise price of $35.45, the company said.
Privately held Best Doctors was founded in 1989 by Harvard Medical School professors and now claims more than 40 million members globally. In 2014, Best Doctors acquired Rise Health to expand of its digital health services. Best Doctors generated $92.2 million in 2016, $23.7 million in the first quarter of 2017, and is expected to generate more than $100 million this year.
John Commins is a senior editor at HealthLeaders.