February 26, 2021
✦ Cigna Corp.’s Evernorth division has reached a deal to acquire the telehealth platform MDLIVE, the companies said on Feb. 26. Cigna is already an MDLIVE customer and investor, and noted in a press release that the telehealth firm “has a sizable and forward-thinking client base, a class-leading provider network, brand recognition among customers and consumers, and experience in medical and behavioral health.” In a note to investors about the deal, Evercore ISI analysts wrote that “although we don’t view MDLIVE as particularly differentiated vs. other telehealth providers, it gives [Cigna] a platform to better integrate telehealth medical and behavioral visits into its healthcare offering to help control costs and improve patient experience, and expands the service offerings Evernorth can cross-sell into other health plans.” The analysts also noted that previously MDLIVE was considering going public, and its latest funding round valued it above $1 billion. No financial terms were disclosed for the deal, which is subject to customary closing conditions and regulatory approvals, and is expected to be completed in the second quarter of 2021. Read more at https://prn.to/3qZ9eOr.