What happened to Livongo stock?
The day before the announcement, Livongo shares traded for $144.53. The proposed deal — with its mix of Teladoc stock and cash — valued Livongo that day at a 10% premium or about $159. Since then, Livongo shareholders have suffered a 19% loss in value.
What does the Teladoc and Livongo merger mean for You?
The merger was announced in August. It will take the form of a share exchange, in which one share of Livongo will be swapped for 0.592 shares of Teladoc and $11.33 in cash; all told, the deal was valued at $18.5 billion.
Why aren't investors buying the Teladoc-Livongo deal?
Investors aren't necessarily buying this line of reasoning; some believe that the tie-up lacks true synergy. Teladoc is a provider of a wide variety of telemedicine services, while Livongo is a tech-forward chronic care management specialist.
What does the Teladoc-Aetna merger mean for consumers?
The [merger with Teladoc] helps ensure that consumers get the right care at the right time” while controlling their data.
Who bought Livongo?
TeladocTeladoc, the largest virtual care company in the U.S., bought Livongo for $18.5 billion in cash and stock late 2020 in the biggest digital health deal to date. However, the merger has struggled, resulting in the large goodwill impairment charge for the Purchase, New York-based vendor.
When did Tdoc buy Livongo?
October 2020Telehealth specialist Teladoc Health (TDOC -6.04%) acquired digital health management company Livongo in October 2020. The acquisition brought Livongo's programs for remotely managing conditions like diabetes under Teladoc's umbrella.
How much is Livongo worth?
As of June 2022 Livongo Health has a market cap of $14.19 Billion. This makes Livongo Health the world's 1170th most valuable company by market cap according to our data.
Why did Teladoc and Livongo merge?
Executives said the acquisition will allow it to broaden its market reach to care for people across a widened age range, opening the provider to reach 40% of Americans. The company is expanding its focus beyond primary care to support chronic condition management and behavioral health.
Who are Livongo competitors?
Livongo's top competitors include Twin Health, Lyra Health, Hello Heart, Lark Health, Glooko, Virta Health and Omada Health. Livongo Health is a consumer digital health company providing tools and coaching to manage diabetes.
Is Livongo making money?
Livongo's full-year 2019 revenue totaled $169.9 million, up 149% from $68.4 million in 2018. The Mountain View, California-based company's revenue jump was primarily driven by growth in its core Livongo for Diabetes solution.
How does Livongo make money?
Revenue comes from client companies like Amazon and Target, which pay Livongo $65-to-$75 a month for each affected employee it monitors. But the bigger idea animating Livongo is how it uses AI to continuously analyze its devices' data, plus everything else the system knows about its patients.
What is the stock symbol for Livongo?
LVGOLVGO - Livongo Health Stock Price - Barchart.com.
When did Livongo and Teladoc merge?
The merger of Teladoc Health and Livongo was announced on August 5 th and was completed in just under three months. Teladoc Health recently announced its go-forward leadership team and has announced early client wins driven by the pending combination.
Is Teladoc merged with Livongo?
PURCHASE, NY, Oct. 30, 2020 (GLOBE NEWSWIRE) -- Teladoc Health (NYSE: TDOC), the global leader in whole person virtual care, today announced that it has completed its merger with Livongo. The milestone marks completion of the most significant blending of capabilities and talent in the history of digital health. By joining the market leaders in virtual care and applied health signals, the combined company becomes the only consumer and healthcare provider partner to span a person’s entire health journey.
The Expected Value Is Already In the Price
Therefore, the enterprise value-to-adjusted EBITDA multiple is 49x (i.e., $29.226 billion divided by $591 million). Even if we discount the future value of the enterprise value by 15% for three years, the discount factor is 65.75%.
What To Do With TDOC Stock
To be fair, most analysts covering TDOC stock are still very positive about the new combined company. You can see this quite well on a Barron’s page which shows that more analysts, now up to 18, have written “buy” reports on the stock. In fact, the average target price is now $247.20, or 26% higher than current prices.
Why is it so hard to retain Livongo?
That’s because Teladoc executives will control the combined companies’ Chair and CEO positions.
Who is the president of Livongo?
Livongo’s president Dr. Jennifer Schneider says the combined companies will be better off. She envisions that the two companies might use Livongo’s chronic care platform to identify possible patient health problems that could be resolved through Teladoc’s virtual visits.
How much cash did Teladoc swap for Livongo?
The market’s message is that Teladoc — which agreed to swap 0.592 Teladoc shares plus $11.33 in cash for each Livongo share — has not done a good enough job of making its case.
How much is Teladoc revenue in 2020?
In the second quarter of 2020, Teladoc’s revenues topped $241 million — 9.5% more than the Zacks consensus and 85% more than the year before, according to Zacks Equity Research. Livongo’s revenue of about $92 million was up 125% from the year before, noted Mobihealthnews. Teladoc lost $30 million in the quarter while Livongo’s net income was $0.
How much did Teladoc lose in the quarter?
Teladoc lost $30 million in the quarter while Livongo’s net income was $0. Teladoc’s statement regarding the merger offered a full-throated defense — including 85% growth in pro-forma 202o revenue to some $1.3 billion and more than $120 million in EBITDA.
Why is it difficult to retain Livongo's talent?
It could be difficult to retain Livongo’s talent given the leadership structure of the merged companies. That ’s because Teladoc executives will control the combined companies’ Chair and CEO positions.
How much will Singh's company make in 2025?
Singh expects $5 billion in 2025 sales for the combined company — up at a 38% compound annual rate from $720 million in 2019; combined 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.1 billion; and industry leadership in “virtual care and chronic care management.”
What happens if you own 100 shares of Livongo?
Suppose you own 100 shares of Livongo, what will be the consequence then? Well, you could, of course, sell your shares, as both companies stay tradeable on the stock exchange and can be bought and sold.
Who is the CEO of Livongo?
Zane Burke, Livongo's CEO, has a 100% rating on Glassdoor, based on 22 reviews. That's quite amazing. Jason Gorevic, the current CEO of Teladoc and the CEO of the new combination, has also quite a good score on Glassdoor, though:
How much of Teladoc Health will be owned by Livongo?
When the merger completes, and that will normally be near the end of Q4, existing Teladoc Health shareholders will own approximately 58% of the combined company and current Livongo shareholders about 42%.
How often does Livongo monitor Claire's health?
Instead of checking the patient's health condition once every month, every quarter, every year, Livongo makes that Claire's hypertension is constantly monitored. She's given nudges several times a day for healthy habits and tips about diet and exercise.
Why do you buy acquirers?
If you want more exposure to this new company, it mostly makes most sense to buy the acquirer because the acquisition target often trades at a premium versus where it was before. But in this case, Livongo also fell.
How much is the combined company's EBITDA for 2020?
The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of the combined company is expected to be $120M for 2020.
Why do traders want to take profits of the table?
Besides that, a lot of traders and investors will want to take profits of the table because they are worried about the deal. After all, both stocks had done outstandingly. This is the return since the beginning of the year until before the merger announcement:
Re-Evaluating Teladoc Health
Interestingly, Teladoc reported earnings just a few days before the merger announcement. While the company slightly missed on earnings expectations, revenue crushed it. Sales of $241 million beat expectations by more than $20 million (almost 10% above estimates) while growing 85% year over year.
Trading Teladoc Stock
Look at how strong this name has been. The 2020 low came on the second trading day of the year. Since then, it has been one monster rally after the other. Seeing shares go from $250 to $180 — a $70, 28% correction — after the merger news was pretty intense.
Meet Matt McCall
With his next-generation approach to investing, Matt McCall finds better stocks for you to invest in — not the same old companies over-hyped on Wall Street.
Summary
I initially sold out of my LVGO position fully because the merger looked terrible at first glance.
Initial reaction
Initially, when I read the merger headline, I thought I had misread something. With Livongo growing at over 100% with plenty of financing available in the current market, there really was no need to sell out to any company. After a few seconds, when I realized that the news was real, my immediate thought was that the deal was terrible for Livongo.
TDOC investment case
Teladoc is the largest telemedicine company in America. Telemedicine is basically the virtual equivalent of going to a doctor and includes virtual video/voice calls directly with a doctor as well as virtual prescriptions.
Merger analysis
The main difference between TDOC and LVGO is that generally, TDOC is mainly for patients suffering from acute conditions while LVGO is mainly for patients who are suffering from chronic conditions. This can be illustrated by the diagram below:
Financials and valuation
All of LVGO's revenue comes from subscription, and while TDOC generated over 80% of revenues from subscriptions last year, it still derives a substantial amount of revenue from one-time visits.
Takeaway
After selling my LVGO position, I have put part of the proceeds into TDOC to try and benefit from the next leg of its journey to become a major player in the healthcare industry.
Who is leaving Livongo?
After the merger closes, several of Livongo's top executives, including CEO Zane Burke and President Jennifer Schneider, will depart the company, along with Livongo's CFO and SVP of Business Development.
How much did Teladoc and Livongo merge?
In a Thursday meeting, shareholders of virtual care behemoth Teladoc and chronic care management player Livongo approved the massive $18.5 billion merger between the companies, based on preliminary voting results.
How much did Teladoc buy Livongo?
Updated. UPDATE: Oct. 30, 2020: Teladoc has completed its $18.5 billion acquisition of Livongo following overwhelming shareholder approval, the virtual care giant announced Friday. Under the terms of the merger, Livongo shareholders will receive 0.5920 times shares of Teladoc, plus cash of $11.33 for each Livongo share.
How much did Teladoc lose?
However, Teladoc did operate at a loss of $35.9 million in the quarter. About $16 million of that loss was due to transaction costs from acquiring Livongo, the company said.
Who approved the merger of Teladoc and Livongo?
During a special meeting held Thursday morning, Teladoc shareholders approved Teladoc's charter amendment and share issuance as part of the Livongo acquisition with more than 99% in approval. In a separate meeting, Liv ongo shareholders approved the merger agreement, also with more than 99% of votes in approval, Teladoc said in a Thursday release.
How much revenue did Teladoc make in the third quarter?
Teladoc also released its third quarter earnings Wednesday. The Purchase, New York-based vendor reported revenue of $288.8 million in the quarter, up almost 110% compared to the third quarter of 2019. Total visits in the quarter were 2.84 million, more than triple the same time last year and slightly up sequentially.
Who is leaving Livongo?
Four of Livongo's top executives will leave now that the deal is finalized, including CEO Zane Burke, President Jennifer Schneider, Chief Financial Officer Lee Shapiro and Steve Schwartz, senior vice president of business development.
How much did Teladoc pay for Livongo?
Teladoc announced Aug. 5 it planned to pay $18.5 billion in cash and stock for Livongo, which provides diabetes monitoring and remote monitoring. The combination of two of the largest publicly-traded virtual care companies will create a health technology giant just as the demand for virtual care soars. The combined company is expected ...
Who approved the acquisition of Teladoc?
During a special meeting of shareholders Thursday, Teladoc Health’s shareholders approved the deal with more than 99% in approval. Livongo shareholders also approved the acquisition with more than 99% of votes in approval, Teladoc said in a Thursday release.
How much is Teladoc's revenue in 2020?
During the first nine months of 2020, revenue grew 79% to $711 million. Livongo reported third-quarter total revenue of $106 million, up 126% year over year from $47 million during the same period in 2019.
