Teladoc Raises $157 Million In IPO, Well North Of Initial Targets


Teladoc has finalized its IPO two months after filing its SEC Form S-1, selling 8.3 million shares at $19 per share, a final price well north of the $15-$17 range it was initially seeking. The per-share price pegs Teladoc’s total value at $620 million.  Shares traded for the first time today on the NYSE under the ticker TDOC,. Stock prices soared 50 percent by the close of trading, finishing the day at $28.50.

Since its 2oo2 launch, Teladoc has raised $90 million in VC funding, with its last round, a $50 million Series C, closing in September 2014. The company has grown its market share in the telehealth sector both through organic expansion and through acquisitions. Teladoc acquired Consult A Doctor in August 2013 for $16.6 million, then acquired AmeriDoc in May 2014 for $17.2 million . In January 2015, the company acquired BetterHelp, a telehealth-based behavioral health vendor, for $4.5 million in cash and future royalties. Lastly, Teladoc acquired StatDoc on June 17 for $30.5 million in cash and stock options.

With a number of acquisitions and an IPO now behind it, Teladoc is in excellent shape to make a strong push for deeper market share in the telehealth space, where it competes with AmericanWell, Doctor on Demand, and MDLive. Each has announced major funding rounds in the last year as competition heats up in the telehealth market, but Teladoc is the first telehealth vendor to go public, and is now in the best position financially to expand and seize control.

While Teladoc has a lot to be exited about after its better than expected IPO performance, the company is mired in legal battles. For the past several years, Teladoc has been arguing a case against the Texas Medical Board to ease restrictions on video consultations that it says are designed to give brick-and-mortar health systems a strategic advantage and reduce overall competition in the healthcare market. Dallas-based Teladoc has a strong presence in Texas, and earns a significant portion of its overall revenue from business it does within the state. The company is also fighting off a lawsuit filed by its rival AmericanWell that claims Teladoc is infringing on a patent it has for the technology it invented to connect patients with doctors.

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