Teladoc-Livongo Deal Could Fuel M&A on Smaller Digital Health Companies

  • Teladoc Health’s (NYSE:TDOC) proposed $18.5 billion buyout of Livongo Health (NASDAQ:LVGO) will be the largest in the history of the digital health sector, STAT reported.
teladoc health logo on a mobile phone screen
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  • LVGO shares were up nearly 4% on Thursday in pre-market trading. TDOC stock was up more than 6.5% after falling 18.74% on Wednesday in trading that was nine times the average daily volume.
  • Last month, InvestorPlace contributor Chris Markoch named the two companies among the five best telehealth stocks on the market right now.
  • The deal is likely to create a digital health behemoth that combines Teladoc’s telemedicine platform with Livongo’s chronic disease coaching programs and comes as the pandemic has been fueling unprecedented demand for virtual care, according to STAT.
  • Stephanie Davis, managing director of healthcare technology for SVB Leerink, said the deal could make the landscape more challenging for smaller companies who would have to fight with a far larger rival for the limited attention span — and budgets — of employers and insurers.
  • Experts believe the deal could result in M&A activity as smaller companies race to find their place.

Article printed from InvestorPlace Media, https://investorplace.com/2020/08/teladoc-livongo-deal-could-fuel-ma-on-smaller-digital-health-companies/.

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