Correction: A previous version of this arcticle misstated the location of company. This story has also been updated with additional information.
This morning Purchase, New York-based telehealth giant Teladoc announced that it is acquiring Advance Medical, a company that specializes in virtual care, for $352 million.
The move is expected to help Teladoc grow its global market into Latin America and Asia Pacific, and enable the company to provide care in 20 languages through its platform.
“Today we bring together two companies who, by consistently putting the consumer first, have proven the transformative power of offering full-spectrum virtual care solutions", Jason Gorevic, CEO of Teladoc, said in a statement. “This acquisition advances our strategy to continually expand our product portfolio, as well as our operational footprint in attractive global markets."
Advanced Medical was founded in 1999 and has more than 450 doctors on staff, according to their webpage. The platform has reached more than 125 countries and provides services in more than 20 languages. Currently the company offers behavioral care, expert medical opinion, enterprise support, global care on demand, specialty pharmaceutical management, and virtual primary care.
“We share Teladoc’s belief that virtual care solutions should be comprehensive in nature, and provide answers and outcomes for people regardless of their location or medical condition,” Carlos Nueno, cofound of Advanced Medical, said in a statement. “Our clients have increasingly demanded high-quality virtual care at scale, and now we have the ability to bring this meaningful change to the healthcare system.”
This isn’t Teladoc’s first high-profile acquisition. In June of 2017 the company acquired Best Doctors, a virtual medical consultation company. The company said the acquisition would enable it to have a connected care platform focused on improving outcomes for some of the most complex medical conditions. The telehealth giant paid $375 million in cash and $65 million in Teladoc common stock for the purchase of the company.
During Teladoc’s Q1 earnings call the company announced that, while it had big gains in total revenue, memberships, and user engagement, it is still a long way off from turning a profit. However Gorevic said he was optimistic about the future during the call. They have since adjusted the 2018 outlook of adjusted EBITDA positive in the range of $7 to $10 million.
“We saw a very strong start to 2018 with continued success across the business and another quarter in which we exceeded our expectations for all of our key metrics,” CEO Jason Gorevic said during the call. “… With several months of 2018 behind us, I’m pleased to see that the leverage in our model is clearly contributing to our improved financial and operational performance. While we forecasted this leverage for quite a while, we are pleased to see it come to fruition and happy to report that we’re on track to achieve our long-term financial targets.”