Teladoc and Livongo merged Aug. 5 in an $18.5 billion deal that was accelerated by the pandemic. The combined company has a market cap larger than Johnson & Johnson, and aims to start making changes as early as next week.
Five new details on the transaction:
1. The combined market cap for Livongo and Teladoc was $8 billion before the pandemic; now it's $38 billion, according to a Forbes report. Steve Kraus, partner at Bessemer Venture Partners, attributed the huge growth to the rapid market adoption during the pandemic.
2. Both companies have relationships with health plans, employers and other partners. Livongo penetrates 30 percent of the Fortune 500 companies and Teladoc penetrates 40 percent. Teladoc CEO David Sides said the companies aim to cross-sell to existing clients next week.
3. Teladoc and Livongo have around 25 percent client overlap; 75 percent of each company's established clients aren't currently using the technology from the other, said Jennifer Schneider, MD, president of Livongo, in a Silicon Valley Business Journal interview.
4. Mr. Sides and Livongo CEO Zane Burke worked together at Cerner. While Dr. Schneider didn't reveal how talks started about the merger, she did say that Livongo wanted to be closer to the provider community and Teladoc wanted to build a reputation in the consumer community.
5. Teladoc and Livongo are currently hiring and don't plan layoffs as a result of the merger, according to Dr. Schneider.