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.
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(END) Dow Jones Newswires
February 12, 2021 06:42 ET (11:42 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.