Livongo Health, a health care tech company founded by Chicago entrepreneur Glen Tullman that has a large downtown office, is being acquired by a New York telemedicine company in a major deal for the health-tech industry.
Teladoc Health, a telemedicine provider, has agreed to buy Livongo in an $18.5 billion deal. In the merger agreement, each share of Livongo will be exchanged for 0.5920x shares of Teladoc Health plus cash consideration of $11.33 for each Livongo share, the companies said in a news release.
The combined company is expected to do $1.3 billion in revenue this year.
Jason Gorevic, the current CEO of Teladoc, will be the CEO of the combined company, which will be called Teladoc Health. The business will be headquartered in Purchase, New York.
“This highly strategic combination will create the leader in consumer-centered virtual care and provides a unique opportunity to further accelerate the growth of our data-driven member platform and experience,” Tullman said in a statement.
Founded in 2014, Livongo makes a blood glucose monitor and digital dashboard to help people manage diabetes and other chronic health conditions. The company was headquartered in Mountain View but has operated a large office in Chicago.
Livongo went public in June and its stock has skyrocketed since, drawing comparisons to video conferencing standout Zoom.
Teledoc went public in 2015 and is one of the top telemedicine providers. The company says it delivers millions of medical visits across 175 countries each year.
The companies said the merger will create a "comprehensive platform for virtual health care delivery." The deal is expected to close by the end of 2020.
