Teladoc Health Inc. agreed to acquire virtual health services provider InTouch Health for $600 million in cash and common stock.
Purchase, N.Y.-based Teladoc agreed to pay $150 million in cash and $450 million in its common stock to the Goleta, Calif.-based InTouch Health in the deal, which is expected to close in the first half of this year.
Demand for virtual care services is on the rise, Teladoc said in a Jan. 12 press release, adding that in a J.P. Morgan research survey from 2019, 40% of surveyed hospitals said they intend to increase budgets for telemedicine services.
Teladoc does not expect a significant impact to its financial results from the transaction.
Lazard was sole financial adviser, and Latham & Watkins LLP was legal adviser to Teladoc Health in the deal, while J.P. Morgan was sole financial adviser and Wilson Sonsini Goodrich & Rosati LLP was legal adviser to InTouch Health.