Teladoc, Livongo Health Merger Valued At $18.5B
Teladoc Health Inc (NYSE: TDOC) shares are trading lower on Wednesday after the company announced a merger agreement with Livongo Health (NASDAQ: LVGO). The combination of the two businesses is expected to create a global leader in consumer-centered virtual care.
Teladoc will pay $11.33 per share along with exchanging each Livongo share with 0.592 shares of its own stock, representing a value of $18.5 billion based on the closing price of Teladoc Health shares as of Aug. 4.
Once the merger is complete, the existing Teladoc Health shareholders will own approximately 58% and existing Livongo shareholders will own approximately 42% of the combined company.
The company will have expected 2020 pro forma revenue of approximately $1.3 billion, representing year over year pro forma growth of 85%. The combined company is expected to have pro forma Adjusted EBITDA of over $120 million for 2020.
Teladoc Health shares were trading down 2.17% at $244 in Wednesday’s pre-market session. The stock has a 52-week high of $253 and a 52-week low of $54.58.
Livongo Health shares were trading up 6.56% at $154.01. The stock has a 52-week high of $149.84 and a 52-week low of $15.12.
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