Digital-Health Company Sharecare to Go Public in SPAC Deal
February 12 2021 - 6:57AM
Dow Jones News
By Dave Sebastian
Digital-health company Sharecare is going public by combining
with the special-purpose acquisition company Falcon Capital
Acquisition Corp., in a deal that gives Sharecare an enterprise
value of about $3.9 billion, the companies said.
Health insurer Anthem Inc. is also making a direct investment in
Sharecare, the companies said Friday. Founded in 2010, Sharecare is
a platform that lets users find doctors and track health habits,
and it recently agreed to buy digital-health platform doc.ai.
The deal value represents about 9.5 times 2021 estimated net
revenue, the companies said. They said Sharecare has a recurring
revenue model that could deliver a 20% year-over-year growth.
The combined entity will have about $400 million in growth
capital for sales force expansion, new digital offerings and
mergers and acquisitions, the companies said. The transaction
involves a $425 million private investment, they added.
Jeff Arnold, the founder of WebMD, will continue leading
Sharecare as chief executive officer and chairman, the companies
said. Falcon is expected to own about 20% of the new company, the
companies added. Falcon Chairman and Chief Executive Officer Alan
Mnuchin will join Sharecare's board, they said.
Sharecare and Falcon will donate about $4 million in the
surviving company's stock to Sharecare's charitable foundation at
closing, expected in the second quarter, they said.
Also known as blank-check companies, SPACs raise money before
they develop a business. They use the proceeds to make an
acquisition, usually within a couple of years, that converts the
target into a public company.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
February 12, 2021 06:42 ET (11:42 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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