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Tuesday, May 17, 2022

Teladoc Health [NYSE: TDOC] Announces Merger With Livongo Health [NASDAQ: LVGO]

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Telehealth market leader Teladoc Health, Inc. [NYSE: TDOC] disclosed Wednesday it would buy Livongo Health, Inc. [NASDAQ: LVGO]. Both companies have signed a definitive agreement.

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As per the agreement and after the unanimous decisions of both the companies, each shares of Livongo Health will be traded for 0.5920x shares of Teledoc Health plus cash consideration of $11.33 for each Livongo share, totaling a value of $18.5 billion based on the closing price of Teladoc Health shares as of August 4, 2020.

Teladoc Health shares closed green during the trading session of Tuesday. Shares moved up 5.18%, or up +12.28 at a closing price of $249.42. It has day low range of $235.57 and a day high range of $253.00.

Right now its trading volume is 2.92 million as compared to the average volume of 2.65 million. Looking at its profitability, its return on assets (ROA), return on equity (ROE), and return on investment (ROI) is -5.30%, -8.80% and -4.80%, respectively.

Its Gross Margin is 63.50%, Operating Margin is -10.00%, and Profit Margin is -13.20%. If we turn our focus on its liquidity, it has a current ratio of 11.40. Likewise, its quick ratio is the same as the current ratio.

Teladoc Health has Total debt to equity ratio of 0.73. During the past 52-weeks of trading, this company’s stocks have fluctuated between the low and high of $54.58-$240.00, respectively. Teladoc has moved up 356.97% from its 52-weeks low and increased 3.92% from its 52-weeks high.

On the other hand, shares of Livongo has exhibited the change of 5.78%, or up +7.90. It has opened at $140.97 and has a closing price of $144.53. Its trading volume is 10.87 million as compared to the average volume of 4.42 million.

If we turn our focus on Livongo’s profitability, it has return on assets (ROA) of -9.90%, return on investment (ROI) of -11.60% and return on equity (ROE) of -13.10%. In addition to this, Livongo has recorded the sales of 207.00 million and its market cap is 13.71 billion.

Furthermore, Livongo has Gross Margin of 73.80%, Profit Margin of -22.20%, and an Operating Margin of -24.40%.

It has recorded the 52-weeks low range of $15.12 and a high range of $136.86. After the completion of the merger, existing Livongo Shareholders will receive 42% and existing shareholders of Teldoc Health will gain 58% of the merged company.

This merger is an opportunity to improve the delivery, access and experience of healthcare for customers.

This merger will bring millions of more customers in virtual care and help in building deeper customer and provider relationships. The transaction is anticipated to close by the end of Q4 2020.

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