Why the Market Hates the Teladoc-Livongo Deal

Why the Market Hates the Teladoc-Livongo Deal

Wednesday morning, Teladoc Health (NYSE: TDOC), the country's leading telehealth service, said it would acquire Livongo Health (NASDAQ: LVGO), a provider of digital health monitoring tools for patients with chronic diseases, in an almost all-stock deal. According to the terms, Teladoc will pay 0.592 shares of its stock (on Thursday, that equaled about $125) for each share of Livongo, plus $11.33 in cash.