Sharecare, a virtual health platform that helps people manage all of their health in one place, and Falcon Capital Acquisition Corporation, a special purpose acquisition company (SPAC), entered into a definitive merger agreement to merge. The newly public company will be listed on NASDAQ under the ticker symbol SHCR.
The company is expected to have an initial enterprise value of $3.9 billion with approximately $400 million in growth capital on the balance sheet.
The transaction implies a $3.9 billion enterprise value for Sharecare, or approximately 9.5x 2021 estimated net revenue. According to an estimate, post-transaction, Sharecare will have approximately $400 million on its balance sheet to fund growth initiatives.
Jeff Arnold, founder, chairman, and chief executive officer of Sharecare, said: “We started Sharecare to leverage innovations in consumer technology – specifically the smartphone – to create a frictionless experience that engages people across the dynamic continuum of their healthcare needs. By integrating fragmented point solutions and bringing together stakeholders across the healthcare ecosystem into one connected virtual care platform, we believe that Sharecare is uniquely positioned to transform the way people access, providers deliver, and employers and health plans administer high quality, cost-efficient healthcare. Strategic partners, Anthem and Digital Alpha, will enable continued innovation in delivering high-impact solutions at scale. We believe Falcon will be invaluable as we pursue this next phase for Sharecare”.
Alan Mnuchin, chairman and chief executive officer of Falcon, added: “Jeff is a rare visionary who knows how to execute – multiple times over – and, at Sharecare, he and his exceptional team have continued to evolve and grow the business over the last decade, emerging as what we believe is a category of one. With its ability to harness the power of data and address fragmentation, Sharecare has the potential to redefine not only the marketplace but also people’s relationship with their own health and the stakeholders there to support them. We are excited to work with Sharecare to bring this comprehensive and innovative digital health platform to the public markets”.
The transaction that received approval from boards of directors of Sharecare and Falcon is expected to close in the second quarter of 2021, subject to Falcon stockholder approval and other customary closing conditions.
Advisors: Morgan Stanley and J.P. Morgan Securities acted as financial advisors, and King & Spalding acted as legal counsel to Sharecare. Goldman Sachs Group acted as financial advisor, and White & Case acted as legal counsel to Falcon Capital Acquisition Corporation. Goldman Sachs and J.P. Morgan Securities acted as joint placement agents in connection with the PIPE offering.
Recently in another SPAC deal, Sema4, a patient-centered healthcare data analytics company, and CM Life Sciences, a SPAC, sponsored by affiliates of Casdin Capital and Corvex Management, have entered into a definitive business combination agreement.
