The outbreak of the corona virus in recent months and the restrictions that followed it have changed quite a few of the behavior patterns in the world. In the job market, many companies have started working from home. In the field of fintech, companies like Square (NYSE: SQ) are getting a windfall (for the full article). In the medical field, the corona virus causes a surge in interest in companies that perform “remote care” – the proliferation of health services through IT and communication technologies.
BizPortal commentator Shlomo Greenberg addressed an area that is gaining momentum in the latest weekly column (for the full article).
Tonight (Wednesday), the sector gets another boost when Teladoc Health (NYSE: TDOC) announced that it had reached agreements to acquire Livnago for $ 18.5 billion. The company’s stock is responding with sharp declines of 17%. “A year ago I would not have said it was so fast, but things have accelerated. Consumers are flocking to virtual therapy,” said Teledok CEO.
Livongo Health was issued about a year ago at a market value of $ 3.4 billion, so investor skepticism may be understandable. The company provides an integrated package of solutions for the healthcare industry. The company’s solutions enable a change in the behavior of a sufferer suffering from a chronic illness such as diabetes, using a device that measures and guides various body indices, such as the level of the surge, heart rate and other physical data.
The merger agreement is expected to create a company with annual revenues of $ 1.3 billion, with Jason Gurevitch, the current CEO of Teledok, expected to be the new CEO. The deal is expected to close later this year in accordance with regulatory approvals.
Interest in the sector also affects the Israeli company Dario Health (NYSE: DRIO). The small company’s share, which made headlines last Friday with a private placement to a number of institutional entities from Israel (for the full article), is soaring tonight on Wall Street.
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