Teladoc To Buy HealthiestYou; Backs FY16 Net Loss View, Ups Revenue Outlook

(RTTNews) - Teladoc, Inc. (TDOC), a provider of telehealth services, announced Thursday that it has signed a definitive agreement to acquire HealthiestYou, an Arizona-based telehealth consumer engagement technology platform.

Under the terms of the agreement, the purchase price consists of $45 million cash and 6.96 million shares of Teladoc's common stock.

The $45 million cash component will be funded in its entirety with Teladoc's recently expanded bank facility.

Teladoc expects the acquisition of HealthiestYou to close on July 1.

Teladoc's highly scalable infrastructure will immediately provide the telemedicine services to HealthiestYou's product suite.

HealthiestYou generated 2015 revenues of $10 million, and approximately $8 million for the first six months of 2016. It was net-loss and EBITDA break-even for 2015 and for the first six months of 2016.

Teladoc said the acquisition of HealthiestYou does not change its timeline to profitability and continues to expect adjusted EBITDA break-even in the fourth quarter of 2017.

Further, the company updated its outlook for the full year 2016, expecting revenues in a new range of $126 million to $130 million, higher than previous estimate of $118 to $122 million.

For the full year 2016, the company confirmed an expected net loss of $51.8 million to $53.8 million. Net loss per share is expected between $1.22 and $1.27, compared to previously communicated $1.33 and $1.38.

Guidance for adjusted EBITDA loss range of $35 million to $37 million remains unchanged.