Teladoc Health Inc. (NYSE: TDOC) saw its stock soar 9.85% in the pre-market session on Monday. The virtual healthcare provider announced the acquisition of Catapult Health for $65 million, bolstering its capabilities in early detection of health conditions, at-home diagnostic testing, and delivering improved health outcomes.
The strategic acquisition of Catapult Health, a leading provider of virtual healthcare services, is expected to drive Teladoc's growth prospects. Investors welcomed the move, with Teladoc's stock surging 27.46% last week. Analysts at Citron Research highlighted the potential for the acquisition to enhance Teladoc's profitability and expand margins through effective use of technology.
Subject to customary closing conditions, the transaction is expected to be completed in the first quarter of 2025. The positive sentiment from investors and analysts reflects the potential synergies and growth opportunities arising from the acquisition.
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