Teladoc is broadening its reach outside of the U.S. with a $352 million acquisition of Advance Medical, one of the largest international virtual care providers.
The deal gives Teladoc a new presence in Latin America and Asia, offering new capabilities for multinational employers, the company said in a Monday morning announcement.
Advance Medical includes more than 300 partnerships with multinational employers and insurers in Europe, Asia, Latin America and the U.S. Approximately one-third of the employees of those companies live outside the U.S.
The purchase price of Advance Medical includes $292 million in cash and $60 million in common stock.
“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,” Teladoc CEO Jason Gorevic 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.”
Headquartered in Barcelona, Advance Medical generated about $63 million in revenue in 2017, with adjusted earnings of $2 million. During the first three months of 2018, the company recorded $17 million in revenue.
For Teladoc, the acquisition adds several new capabilities in virtual medical home and clinical risk assessment. During a Monday morning earnings call, Gorevic highlighted the Advance Medical’s “pragmatic” approach to managing chronic conditions by connecting users to experts in the field to answer questions and serve as a coach.
“That has provided significant value to clients and consumers,” he said. “We can learn from their model and leverage that both in the U.S. and outside the U.S.”
Despite massive increases in revenue, visits and paid membership, Teladoc has struggled to turn a profit. The company reported a net loss of $23.9 million during the first quarter of 2018.
Gorevic also hinted during the first-quarter earnings call that Teladoc was exploring an international deal. Days later, the company issued $287.5 million in convertible senior notes, often used by companies to fund an acquisition.