In a move that continues to expand Teladoc’s growing international business, the company plans to acquire Paris-based telemedicine provider MédecinDirect.
Terms of the acquisition were not disclosed, but the company did state that the acquisition would be “immaterial to Teladoc Health’s financial results.”
By combining its virtual care services with the established local medical operations of MédecinDirect, the company is poised to capitalize on positive market conditions for the telehealth market across France, Teladoc said.
The acquisition continues Teladoc’s efforts to consolidate its share of the telehealth market—the company acquired Spain-based Advance Medical in a $352 million deal last year. That deal gave the company a new presence in Latin America and Asia, offering new capabilities for multinational employers.
And, in fact, the company reported that international subscription fees grew to $73.7 million in 2018, an increase of 302%. The company also reported international business accounted for 205,000 visits and brought in $24.4 million in revenue in the fourth quarter of 2018. Teladoc's performance in international markets in 2018 exceeded expectations, according to company CEO Jason Gorevic during a call with analysts last month to discuss 2018 fourth-quarter and full-year results.
Gorevic said Teladoc leaders are “very bullish” on growth outside the U.S. “We’ve seen regulatory changes in the Brazilian market that will open up that market and that will accelerate outlook for a large and attractive market.”
MédecinDirect will become the French country unit of Teladoc Health, adding to existing operations in the U.K., Australia, Canada, Spain, Portugal, Hungary, China, Chile, and Brazil.
“With a continued focus on our global expansion, we will now become the market leader in France with the ability to have an immediate impact on healthcare delivery in the country,” Carlos Nueno, president, Teladoc Health International, said. “On the successful foundation built by MédecinDirect, we will bring our full suite of virtual care services to multinational clients who have been eager to expand.”
Similar to many countries around the world, France also faces the growing demand for convenient access to high-quality healthcare. Consumer awareness of virtual care is on the rise, and the recent positive regulatory changes regarding virtual care reimbursement make the market ripe for virtual care adoption, according to Teladoc.
With more than 40 leading insurance partners and nearly half of the top 30 private medical insurers in France, MédecinDirect has a well-established client base that can now benefit from access to a much broader spectrum of clinical services, the company said.
The acquisition is expected to close during the first half of the year.