MDLIVE Inc., one of the three largest and fastest growing telehealth companies in the U.S. offering virtual healthcare services in all 50 states, today announced the closing of a $50 million crossover equity investment from Sixth Street Growth, the growth investing arm of Sixth Street, a leading global investment firm. The $50 million funding will be used primarily for the ongoing strategic expansion of MDLIVE's comprehensive, technology-enabled, and disruptive Virtual Primary Care digital health platform. Additionally, it will be used for the launch of supporting products and services that provide the company's more than 45 million members with convenient access to high quality, cost-effective, contagion-free Total Care. In a separate transaction, MDLIVE secured $25 million in debt expansion from other investors.
MDLIVE has experienced significant and sustained growth that has been accelerated by the COVID-19 pandemic. Following five consecutive years of over 45% visit growth, in the first half of 2020, MDLIVE virtual visits increased by more than 95%, and total bookings increased by more than 300%. Through July, MDLIVE completed nearly 1 million patient visits with large increases reported across all service lines, including year-over-year growth of more than 500% for behavioral health, more than 350% for dermatology and more than 80% for medical care. This growth was enabled by a significant increase in the number of active providers, which totaled over 2,000 clinicians as of July 31, 2020, comprising the MDLIVE provider network. Despite the surge in visit volume, MDLIVE's wait times for healthcare visits have remained under 20 minutes and averaged only 7.7 minutes in July.
"The pandemic has accelerated the rapid disruptive transformation of virtual healthcare delivery," said Charles Jones, MDLIVE's chairman and chief executive officer. "With this $50 million crossover investment and the healthcare leadership of Sixth Street, MDLIVE will be able to fulfill its Caring Vision of Cost Containment, Convenient, Contagion-free healthcare delivery. As the demand for MDLIVE's offerings has reached all-time highs, we remain focused on the expansion of a single, proven technology platform with the flexibility to integrate with devices and the capacity to leverage AI and ingest vast volumes of data necessary for proactive and preemptive care."
"Virtual care has been a long-term theme for our team, and in an increasingly competitive sector MDLIVE stands out as a scaled and differentiated enterprise technology platform providing high-quality, convenient and cost-effective care," said Michael McGinn, Partner and Co-Head of Sixth Street Growth. "Their offering accrues to the benefit of all healthcare stakeholders, including patients, providers and payers and we are pleased to be partnering with their team as they continue to grow and successfully meet the increased demand for their services."
Sixth Street joins an existing roster of high-profile health care investors in MDLIVE that includes Cigna Ventures, Health Care Service Corporation, Health Velocity Capital, Novo Holdings, Industry Ventures, Sentara Healthcare, Sutter Health, Heritage Group and Bedford Funding.
BofA Securities acted as placement agent for the company.
About MDLIVE
MDLIVE offers convenient, affordable and contagion-free virtual healthcare services to more than 45 million members nationwide. Our network of board-certified physicians, dermatologists, psychiatrists and therapists are specially trained in virtual care and are committed to the highest quality treatment and the best possible patient experience. We leverage disruptive technology and artificial intelligence to simplify and streamline, connecting providers and patients whenever and wherever it's most convenient, often within just minutes. To learn more about our expanding product suite and our partnerships with major health plans, hospital systems and employers, visit www.MDLIVE.com, download our app, or text "Sophie" to MDLIVE (635483) to register.
About Sixth Street
Sixth Street is a global investment business with approximately $47 billion in assets under management and committed capital. Sixth Street Growth is the firm's dedicated platform for making customized, non-control private investments in growth-oriented companies. The Sixth Street Growth team partners with companies and management teams to provide bespoke, accretive financing solutions that often fall between traditional growth equity and commercial debt. Sixth Street has invested over $4 billion in more than 40 companies in its growth investing strategy since inception. Select current and past representative Sixth Street Growth investments include Airbnb, AirTrunk, AvidXchange, Gainsight, Kyriba, Lucidworks, Medsphere, Paycor, PayScale, PaySimple and Spotify.
