Teledoc Health has announced it will acquire Livongo Health for $18.5 billion in a deal that is a mix of cash and stock. Shares of Teledoc dropped nearly 20% following the announcement of the deal because shareholders feel that the valuation of the Livongo, which has run up over 400% for the year, is excessive.
Both companies have benefited from the pandemic because they specialize in providing digitally focused healthcare.