SOC Telemed agreed to merge with Healthcare Merger Corp., a public investment firm that raised $250 million in an IPO last December, on July 29.
Seven things to know:
1. The combined company will operate as SOC Telemed and be listed on the Nasdaq Stock Market with the initial value of around $720 million.
2. SOC Telemed focuses on virtual care solutions primarily used for acute care inside hospitals. The company serves 847 facilities including 543 acute care hospitals in 47 states. Nineteen of the largest 25 health systems in the U.S. use its technology.
3. When the transaction is complete, interim CEO of SOC Telemed Paul Ricci will step down and John Kalix, president of the company, will become CEO. CEO and director of HCMC Steve Shulman will become chairman of the SOC Telemed board.
4. The majority equity holder of SOC, Warburg Pincus, will remain the largest shareholder of the new entity. Institutional investors have a private investment of $165 in common stock of the combined company that will close with the business combination; HCMC also has around $250 million in a trust account.
5. Current SOC shareholders will own 40 percent of the combined company and HCMC shareholders will own 32 percent. The rest of the company will be held by PIPE investors and HCMC will own 7 percent of the issued and outstanding shares of SOC common stock after closing.
6. The combination will likely close in the fourth quarter of 2020.
7. Credit Suisse was a financial advisor to SOC and Orrick Herrington & Sutcliffe were legal counsel. MST Health partners was financial advisor to HCMC and Weil, Gotshal & Manges and Ellenoff Grossman & Schole were legal counsel.
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