Teladoc Health to merge with Livongo in $18.5B cash and stock deal

Teladoc Health (NYSE:TDOC) -1.3% to merge with Livongo (NASDAQ:LVGO) +2.7%, whereby each share of Livongo will be exchanged for 0.592 shares of Teladoc Health plus cash consideration of $11.33 per share representing a total transaction value of $18.5B.

Post-merger, existing Teladoc Health shareholders will own ~58% and existing Livongo shareholders will own ~42% of the combined company.

Expects FY20 pro forma revenue of ~$1.3B (+85% Y/Y) and pro forma EBITDA of over $120M.

The combined will drive revenue synergies of $100M by the end of the second year following the close, reaching $500 million on a run rate basis by 2025 and cost synergies of $60M by the end of the second year following the close.

The deal should close next quarter.

The combined company will do business as Teladoc Health and will be headquartered in New York.