Teladoc (NYSE:TDOC) and Livongo Health (NSDQ:LVGO) today filed a joint proxy statement in connection with a proposed merger.
Last month, the companies entered into a definitive merger agreement worth approximately $18.5 million. At the time, each share of Livongo was set to be exchanged for 0.5920 shares of Teladoc, plus cash consideration of $11.33 per Livongo share, totaling $18.5 billion based on the closing price of Teladoc Health chares as of Aug. 4, 2020.
As stated in the joint proxy statement, those totals remain the same under different terms. Each share of Livongo will still be exchanged for 0.5920 shares of Teladoc, plus cash consideration of $4.24 and, before the merger closes, a cash dividend of $7.09 per share of Livongo stock, totaling the $11.33 previously touted.
Both companies are scheduled to hold virtual special meetings of stockholders at 11 a.m. ET on Oct. 29, 2020, with all stockholders of record as of the close of business on Sept. 8, 2020, entitled to vote at the meetings.
The merger is slated to bring the companies together to provide a consumer-centered virtual care platform for the full spectrum of health needs, creating a new standard in healthcare and an improved consumer experience.
Under the terms of the merger, the companies expect that it will deliver significant financial benefits through run-rate revenue synergies of $100 million by 2022 and $500 million by 2025, with $60 million in run-rate cost synergies by 2022.
According to a news release, the merger remains on track to close by the end of the fourth quarter of 2020, subject to stockholder approval and other customary closing conditions.
