The virtual care giant Teladoc Health, Inc. (NYSE: TDOC) is having a wild year. The company’s second-quarter earnings reports showed Teladoc’s year-over-year revenues surged by 85% to $241 million, and its total telehealth visits rose to 2.8 million, a year-over-year increase of 203%, all thanks to the effects of COVD-19.

And now, Teladoc has announced a new merger with Livongo Health, Inc. (NASDAQ: LVGO) valued at $18.5 billion. Livongo is a leading Applied Health Signals company, using its AI+AI engine and a team of data scientists to aggregate and interpret substantial amounts of health data and information to create actionable, personalized health signals delivered to Livongo members, helping them deal with issues relating to diabetes, hypertension, weight management, diabetes prevention, and behavioral health. Livongo Health reported trailing 12-month revenues of $206.95 million.

Under the terms of the deal, each share of Livongo will be exchanged for 0.5920x shares of Teladoc Health plus cash consideration of $11.33 for each Livongo share.

Teladoc Health shareholders will own approximately 58 percent and existing Livongo shareholders will own approximately 42 percent of the combined company. The combination of Teladoc Health and Livongo creates a global leader in consumer-centered virtual care. The company will have expected 2020 pro forma revenue of approximately $1.3 billion, representing a year-over-year pro forma growth of 85 percent. The combined company is expected to have pro forma adjusted EBITDA of over $120 million for 2020.

Following the announcement of the deal, Teladoc’s stocks fell 19% to $202.01, and Livongo dropped 11% to $128.06. Investors are probably most worried about the high price of the deal, which makes sense. The acquisition price is 89.39x revenue, a large multiple, especially in the COVID-19 era. But as COVID-19 cases surge across the country, it seems like telehealth demand isn’t going to falter any time soon, leaving Teladoc in a good spot.

Teledoc last reported a deal this past January when it acquired InTouch Health for $600 million. The transaction closed in the second quarter in July.