Teladoc, Livongo Health Merger Valued At $18.5B

Teladoc Health Inc TDOC shares are trading lower on Wednesday after the company announced a merger agreement with Livongo Health 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.