Hipaa, the world’s largest provider of telehealth technology, will buy a telehealth market valued at $1 billion in a deal that also includes an acquisition by another tech company, the Wall Street Journal reported Friday.
Hipaa acquired Telehealth, which had $6.6 billion in annual revenue, in 2015 for $500 million.
The deal includes $300 million in cash and $100 million in stock, the Journal reported.
HipAA also will receive $100,000 in cash from the sale, the report said.
HipAaa, which is based in Austin, Texas, said in a statement that the transaction is “a great day for the company.”
It will remain a Hipaa subsidiary.
The company plans to focus on its telehealth products, according to the Wall St. Journal.
“Our acquisition of Telehealth marks the next chapter for our growth strategy and the launch of the first truly global telehealth platform,” CEO Steve Lee said in the statement.
HipAgents, the startup that developed the company’s first telehealth product, will continue to run the company, it added.
The acquisition is expected to close in the first quarter of 2019, the company said.