Share of Teladoc Health (New York Stock Exchange code: TDOC) After telemedicine experts announced that it has completed the merger with Livongo Health, the company is ending in failure. LivongoHealth is a health technology company known for its diabetes monitoring platform.
Investors did not like the merger when they first announced the merger in August and sold Teladoc and Livongo shares after the news, so it is not surprising to see Teladoc’s shares fall again after the transaction was completed.Also today, technology stocks include apple, letter, Facebookwith Amazon Earnings were reported last night. Although these numbers were mostly better than expected, investors still dumped all four stocks except Alphabet, indicating that technology stocks may see a bubble after the impressive earnings in many sectors of the industry this year.
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The acquisition of Livongo is almost all stock. Livongo shareholders receive 0.592 Teladoc shares for each Livongo share they hold, plus $11.33 in cash. Under these terms, it’s hard to argue that Teladoc paid a high price for Livongo for using its own stock, but the deal was a bubble in high-tech stocks last month.
In this morning’s announcement, Teladoc touted a combination of “virtual care and applied health signals market leader”, and Teladoc CEO Jason Gorevic said: “Teladoc Health and Livongo were both founded with the same mission: to create a new Our healthcare experience has enabled people all over the world to live the healthiest lives. Today’s news has greatly enhanced our ability to serve thousands of consumers and healthcare professionals around the world.”
Teladoc announced strong third-quarter results earlier this week, in which revenue increased by 109% to $288.8 million.
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Earlier this month, healthcare stocks rose. After the company announced the first major sale of the combined company and signed Guidewell Health as a new customer, investors seemed to be enthusiastic about the merger. Despite the obvious synergy between the merged companies and many reasons for the deal, Teladoc’s valuation is still a question mark, especially considering the response to the earnings of large technology companies.