Teladoc Inc., a Purchase-based telehealth company, will acquire medical consultation firm Best Doctors in a $440 million deal.
The largest telehealth platform in the nation, Teladoc provides virtual care services to more than 7,500 clients, including health care providers and employers. Best Doctors, meanwhile, has a global network of more than 50,000 medical experts that it pairs with data analytics to advise doctors on complex medical cases.
“At Teladoc, our vision has always been to provide the central, trusted source for consumers to find resolution to the broadest array of health care needs, on their terms,” said Jason Gorevic, Teladoc’s CEO. “Now with Best Doctors’ network of world-renowned experts in over 450 specialties, global footprint and exceptional analytic capabilities, we are taking a monumental step towards making that vision a reality.”
Under the terms of the agreement, Teladoc will buy Best Doctors for $375 million cash and $65 million in Teladoc common stock.
The deal will help Teladoc to expand beyond the U.S. into global markets, the company said in its press release.
Teladoc lists corporate headquarters in Lewisville, Texas and 2 Manhattanville Road in Purchase, in The Centre at Purchase office park. Founded in 2002, Teladoc was the first telehealth company to go public when it filed for an IPO in 2015. The company holds 75 percent of the telemedicine market, according to Reuters.
Teladoc’s offerings include general medicine, behavioral health, dermatology, sexual health and tobacco cessation. The company projects it will have 23 million members by the end of the year. Its network offers access to more than 3,000 health care professionals on its app and online. The cost of a “visit” to Teladoc varies according to an individual’s health plan.
Teladoc reported $123 million in revenue in 2016. The company employed 670 people as of Dec. 31, according to an SEC filing.
Best Doctors was founded in 1989 by Harvard Medical School physicians. The company is headquartered in Boston. Last year, it reported $92 million in revenue.
Best Doctors CEO Peter McClennen will continue to lead Best Doctors as president of a new division within Teladoc. He said aligning with Teladoc will allow Best Doctors to deliver “a paradigm shift in care access that comes with a phenomenal patient experience, unprecedented outcomes and cost savings.”
Teladoc expects the deal to close this month, pending regulatory approvals.