Best Doctors, the provider of medical second opinion and consultation services, is set to be acquired by Teladoc the US-based telehealth platform, in a multi-million dollar deal.
This transaction, which is expected to close this month, is subject to regulatory approvals and customary closing conditions.
Under the terms of the agreement, the purchase price consists of $375m cash and $65m of Teladoc common stock. Teladoc has secured committed financing from Jefferies Finance LLC and Jefferies Group LLC for $360m, which combined with the company’s cash on hand, will fund the entire cash portion of the transaction.
Best Doctors has a range of strategic partnerships in the UK, and provides services to members of corporate schemes operated by a number of insurers including Canada Life and Medicash.
Its global network consists of more than 50,000 medical experts who are peer-rated in a Gallup-certified poll as the top 5% of physicians in more than 450 medical specialties.
Best Doctors generated 2016 revenue of $92.2m and generated $23.7m of revenue for the first three months of 2017. Best Doctors is expected to generate in excess of $100m in 2017 revenues. Best Doctors generated $5.6m of net loss and approximately $6.5m of adjusted EBITDA in 2016 and $2.1 million of net income and $2.2m of adjusted EBITDA for the first three months of 2017.
Current Best Doctors CEO Peter McClennen will continue to lead the organisation as president of the new division of Teladoc.
He said: “By combining data and analytics with a focus on nothing but the highest standard for care, we’ve successfully created a better way for patients and their families across the globe to get resolution to the most life-changing medical conditions.
“Now aligned as one greater organization under Teladoc, the impact we can make together is tremendous, delivering a paradigm shift in care access that comes with a phenomenal patient experience, unprecedented outcomes and cost savings.”
Jason Gorevic, CEO of Teladoc, said: “At Teladoc, our vision has always been to provide the central, trusted source for consumers to find resolution to the broadest array of healthcare needs, on their terms.
“Now with Best Doctors’ network of world-renowned experts in over 450 specialties, global footprint, and exceptional analytic capabilities, we are taking a monumental step towards making that vision a reality.”