Specialists On Call (dba SOC Telemed), a provider of acute care telemedicine solutions, announced that it had completed its acquisition of Access Physicians, a multi-specialty acute telemedicine provider, for approximately $194 million.
SOC Telemed said the acquisition furthers its position as a pure-play provider of acute care telemedicine in the U.S, supported by Telemed IQ, a scaled, purpose-built, and secure telemedicine platform. According to the press statement, the combined company now delivers acute telemedicine to almost 1,000 facilities, including over 700 hospitals, across 47 states in the U.S.
The combined company is estimated to have approximately $107-$113 million in pro forma annual revenue in 2021.
Last year, SOC Telemed) agreed to be acquired and taken public by Healthcare Merger Corporation, a special purpose acquisition company. The transaction implies an initial enterprise value for SOC Telemed of approximately $720 million. SOC Telemed, founded in 2014, has raised over $180 million in venture capital to date.
“Access Physicians and SOC Telemed’s technology-enabled, multi-specialty clinical solutions and customer base are complementary and serve to capitalize on the growth opportunities in acute care telemedicine,” said John Kalix, CEO, SOC Telemed. “As we work to address health inequities, our combined organization creates a single partner for customers to optimize care delivery.”
Chris Gallagher, MD, CEO of Access Physicians, who joins the SOC Telemed Board in connection with the acquisition, said: “Our shared belief in a patient and clinician-centric approach was key to this relationship. Access Physicians has long held a commitment to providing the very best patient care possible, and we felt SOC Telemed shared that mission. We sought out a company that would not only share our vision, but also broaden our combined capabilities to accelerate the realization of our vision.”
Advisors: Orrick, Herrington & Sutcliffe served as legal advisor for SOC Telemed, and Armentum Partners served as financial advisor for SOC Telemed. Jackson Walker served as legal advisor for Access Physicians.
A total of 184 digital health companies were acquired in 2020, compared to 169 in 2019, according to Mercom’s Q4 and 2020 Digital Health Funding and M&A Report. Learn more about M&A activity in the digital health sector.
