Teladoc announces agreement to acquire Best Doctors for $440mStaff Writer | June 20, 2017
Teladoc announced that it has entered into a definitive agreement to acquire Best Doctors, a medical consultation company focused on improving health outcomes for the most complex, critical and costly medical issues.
Acquisition Best Doctors is expected to $100 million
By leveraging the proven portfolio of healthcare solutions from both Best Doctors and Teladoc, members will have one simple, virtual, patient-centric way to resolve their healthcare issues, improving outcomes and reducing costs.
This transaction is expected to close in July 2017 subject to regulatory approvals and customary closing conditions. Under the terms of the agreement, the purchase price consists of $375 million cash and $65 million of Teladoc common stock.
Teladoc has secured committed financing from Jefferies Finance LLC and Jefferies Group LLC for $360 million, which combined with the company’s cash on hand, will fund the entire cash portion of the transaction.
Piper Jaffray & Co. and Jefferies LLC. acted as financial advisors to Teladoc on this transaction and Latham & Watkins LLP acted as Teladoc's legal advisor.
William Blair acted as exclusive financial advisor to Best Doctors and Ropes & Gray LLP acted as Best Doctors' legal advisor.
Financial Reporting and Business OutlookBest Doctors generated 2016 revenue of $92.2 million, and generated $23.7 million of revenue for the first three months of 2017.
Best Doctors is expected to generate in excess of $100 million in 2017 revenues.
Best Doctors generated $5.6 million of net loss and approximately $6.5 million of Adjusted EBITDA in 2016 and $2.1 million of net income and $2.2 million of Adjusted EBITDA for the first three months of 2017. ■