teladoc-1604072862939.jpg
Source: Teladoc

Couple seeking telehealth opinion

Teladoc-Livongo Merger Approved by Shareholders

By

Updated

Teladoc Health is a virtual healthcare provider. Teladoc Health's shareholders have shown 99 percent approval for a merger with Livongo Health. Livongo shareholders also voted overwhelmingly in support of the merger in a special meeting on Oct. 29, according to a press release from GlobeNewswire

Article continues below advertisement

The Motley Fool explained that the merger will take the form of a share exchange. Each share of Livongo is valued at 0.592 shares of Teladoc and $11.33 in cash for a total of $18.5 billion for the deal.

“By combining with Livongo, Teladoc Health will be able to connect consumers and healthcare professionals from hospital to home with data insights and personalized support that deliver better health outcomes,” said Teladoc CEO Jason Gorevic, according to The Motley Fool.

Article continues below advertisement
teladoc-livongo-deal-1604078176391.jpg
Source: Teladoc

How does Teladoc work?

Teladoc, which provides virtual healthcare, has been in high demand in 2020 due to the COVID-19 pandemic. Many Americans have chosen to avoid in-person medical visits. Teladoc offers telemedicine through board-certified doctors, licensed nurses, and specialists. 

Article continues below advertisement

When patients connect with Teladoc, they can get medical advice on a phone call, video, or app. People can speak to a licensed professional in their region of the country 24 hours a day.

What does Livongo Health do?

Livongo Health provides support and guidance for Americans dealing with chronic conditions, especially hypertension and diabetes. The company also offers solutions for diabetes prevention, weight management, and behavioral health. Chronic care management is the company's primary focus.

Article continues below advertisement
livongo-health-logo-1604078314745.jpg
Source: Livongo Facebook

Livongo Health provides devices that track important health metrics, personalized feedback, health coaching, custom alerts, and the ability to share information with primary physicians. 

Together with Teladoc, the two connected missions of both companies intend to help provide more comprehensive care as Americans continue to seek more virtual healthcare options.

Article continues below advertisement

Teladoc's stock price and forecast

On Oct. 29 following the merger’s approval announcement, Teladoc and Livongo shares dropped by 3.9 percent. The stock price on Friday, Oct. 30 as of 11:05 a.m. ET was $202.46

The virtual healthcare space will likely keep growing. The COVID-19 pandemic is still sweeping the U.S. and more people aren't willing to return to in-person medical treatment unless absolutely necessary. BusinessWire reported that the virtual healthcare market is projected to reach $77.4 billion in the U.S. by 2026. 

Article continues below advertisement

For Teladoc, 24 CNN Business analysts gave a 12-month forecast with a median target of $251. The high estimate is $305, while the low estimate is $200. Among the 27 analysts polled, 17 rated the stock as a buy, nine rated the stock as a hold, and one rated the stock as a sell. Analysts' consensus is that Teladoc stock is a fairly good buy right now.

Deutsche Bank has also kept its buy rating on Teladoc stock and raised its target price to $244. 

Livongo's stock price and forecast

Livongo Health stock closed Oct. 29 at $139.77. MarketBeat analysts gave Livongo a consensus buy rating. The average rating score was 2.65 with 11 buy ratings, six hold ratings, and no sell ratings. 

Advertisement

More From Market Realist