Virtual care company Teladoc Health Inc. (TDOC) said Sunday, Jan. 12, it has agreed to buy telehealth services firm InTouch Health in a $600 million cash-and-stock deal.

The deal marks Teladoc’s “largest financial investment,” a company representative said in an email.

The purchase price comprises about $150 million in cash and $450 million of Teladoc stock.

In a note on Monday, Canaccord Genuity LLC analyst Richard Close wrote, “We are encouraged by the transaction as it will significantly expand Teladoc’s opportunity in the hospital and health system market segment, in addition to making the combined company the virtual care platform market leader in the employer, payer, and now provider segments.”

Santa Barbara, Calif.-based InTouch, formally known as InTouch Technologies Inc., is a provider of telehealth software and devices. The company’s revenue for 2019 is expected to be about $80 million, according to the news release.

InTouch has partnered with more than 450 hospitals and health systems with more than 14,500 physician users globally.

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